Illya Gerasymchuk
Entrepreneur / Engineer
Interest on Reserve Balances (IORB) is the rate FED pays banks on their excess reserves
commercial banks have reserve accounts at the FED. regulations define the minimum amounts - any excess earns the IORB interest rate set by the FED
the 4 key interest rates set by the FED are:
1️⃣ Overnight Reverse Repo Rate (ON RRP)
2️⃣ Interest on Reserve Balances (IORB)
3️⃣ Discount Rate - also known as Lending Rate
4️⃣ Standing Repo Facility (SRF)
we'll cover them in this order below