Glossary Term

    IORB (Interest on Reserve Balances)

    By Updated

    The interest rate the Federal Reserve pays on reserves that commercial banks hold at the Fed. IORB sits at the top of the Fed's policy corridor and acts as a soft ceiling on overnight rates, since banks should not lend below this risk-free rate. Banks comparing IORB to other short-rate alternatives drive the marginal flow of reserves through the system.

    What IORB Is

    The interest rate the Federal Reserve pays on reserves that commercial banks hold at the Fed. IORB sits at the top of the Fed's policy corridor and acts as a soft ceiling on overnight rates, since banks should not lend below this risk-free rate. Banks comparing IORB to other short-rate alternatives drive the marginal flow of reserves through the system.

    Where IORB Appears in TBL Research

    IORB is one of the money markets and fed plumbing that TBL tracks. For how it fits the broader framework, see Bitcoin and Global Liquidity.

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    The indicators defined here are tracked live on TBL Pulse and interpreted in weekly written form in TBL Pro.