No Interest on Excess Reserves Bill
Official: Prohibition on IOER Act of 2025
This bill would make it illegal for Federal reserve banks to pay interest on extra money that banks hold. This change could affect how banks manage their funds and influence the economy.
Prohibition on IOER Act of 2025This bill prohibits a Federal Reserve bank from paying interest to a depository institution on reserve balances in excess of minimum requirements.
1. This bill stops Federal reserve banks from paying interest on extra reserves. 2. It changes the rules for how banks manage their reserves at the Federal Reserve. 3. The bill aims to prevent banks from earning money on surplus funds. 4. It affects how banks operate and manage their finances. 5. The change could impact the overall economy and banking practices.
This bill affects banks and financial institutions that hold reserves at Federal reserve banks.