Bill > HR3390

This bill, titled the "Bringing the Discount Window into the 21st Century Act," mandates that the Board of Governors of the Federal Reserve System, the central bank of the United States, conduct a comprehensive review of its "discount window" operations. The discount window is a facility through which the Federal Reserve provides short-term loans, known as advances, to eligible financial institutions to help them manage their liquidity needs. The review, which must be completed within 240 days of the bill's enactment, will examine various aspects of the discount window's effectiveness, including its ability to provide liquidity during financial stress, the adequacy of its technology and cybersecurity measures, its communication with other financial regulators and institutions, its interaction with other liquidity providers like Federal Home Loan Banks, and its operating hours in relation to payment systems such as Fedwire Funds Service and FedNow Service. It will also consider the impact of modern technologies like mobile banking on depositor behavior and liquidity risk, and how the discount window can help financial institutions respond to rapid liquidity shortfalls and prevent broader financial instability. Furthermore, the review will address the stigma associated with using the discount window and explore ways to reduce it, improve access, operational efficiency, transparency, and the timeliness of the process for financial institutions seeking advances, including their pricing and terms. Following the review, the Board of Governors must develop a remediation plan to address identified deficiencies and enhance the discount window's effectiveness, outlining specific actions, timelines, and measures for ongoing maintenance. This plan, along with the review's findings, will be reported to Congress within 365 days of enactment, with subsequent annual reports detailing progress and effectiveness. The bill also allows for confidential annexes to these reports if certain information could impact monetary policy, financial stability, or endanger financial institutions. The entire review and remediation process will be repealed once the Board of Governors confirms the full implementation of the remediation plan.

Business and Industry, Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/house-bill/3390/all-info