HR3390-119

What This Bill Does

The Bringing the Discount Window into the 21st Century Act adds a detailed review requirement to section 10 of the Federal Reserve Act. Within 60 days, the Federal Reserve Board must start a review of Federal Reserve Bank discount-window lending programs and finish it within 240 days. The review must cover liquidity support during stress, technology infrastructure, cybersecurity, communication among Federal Reserve Banks, financial institutions, the Board, FDIC, OCC, and Treasury, consistency of access across the Federal Reserve System, interactions with Federal Home Loan Banks, operating hours, Fedwire and FedNow timing, mobile banking and instant communications effects on depositor behavior, and stigma around discount-window use. After the review, the Board must identify deficiencies, write a remediation plan with timelines and controls, report to Congress within 365 days, consult FDIC, OCC, and Treasury before submitting the report, and provide annual updates. The Federal Reserve Inspector General must also submit annual progress reports until the plan is fully implemented.

Who Benefits and How

Depository institutions benefit if the review improves timely access to discount-window advances during liquidity stress. Community banks benefit from a statutory focus on consistent access, operating hours, and stigma reduction. The House Financial Services Committee and Senate Banking Committee benefit from required findings, remediation plans, testimony, and annual progress reports. Financial-stability supervisors benefit from a structured assessment of discount-window coordination with FDIC, OCC, Treasury, and Federal Home Loan Banks. Depositors may benefit indirectly if better liquidity tools reduce bank-run risk during stress events.

Who Bears the Burden and How

The Federal Reserve Board must conduct the review, consult other agencies, identify deficiencies, create and implement a remediation plan, testify, and file annual reports. Federal Reserve Banks must provide operational information and help implement changes to lending, communications, technology, cybersecurity, or hours. The Federal Reserve Inspector General must file annual progress reports on implementation. FDIC, OCC, and Treasury officials must review and provide feedback before the congressional report. Discount-window technology and operations staff bear implementation work until the plan is fully complete.

Key Provisions

• Requires the Federal Reserve Board to begin a discount-window review within 60 days and complete it within 240 days.
• Requires the review to evaluate liquidity support, technology, cybersecurity, communications, operating hours, stigma, and access consistency.
• Requires a written remediation plan identifying deficiencies, corrective actions, timelines, milestones, and interim controls.
• Requires a congressional report within 365 days plus consultation with FDIC, OCC, and Treasury before submission.
• Requires annual Board reports and annual Federal Reserve Inspector General reports on implementation progress.
• Repeals the new review paragraph after the Board notifies Congress and publishes that the remediation plan is fully implemented.