This bill requires the Board of Governors of the Federal Reserve System to review how the Federal Reserve Banks run the discount window and to make improvements. The Board must start the review within 60 days of enactment and finish within 240 days. The review must look at: how well the discount window provides liquidity (including in stress), whether technology and communications are sufficient, cybersecurity, communications among Reserve Banks, Board oversight, interaction with other liquidity providers such as the Federal Home Loan Banks, and whether operating hours should change given payment system hours like FedWire and FedNow.
The Board must give the public a chance to comment during the review. After the review and public comments, the Board must approve by vote a written remediation plan that lists actions, timelines and milestones, and measures to manage problems until fixes are complete. Within 365 days of enactment the Board must submit a report to the House Financial Services Committee and the Senate Banking Committee with the review findings and the remediation plan. Before sending the report, the Board must share it with the Comptroller General and relevant Inspectors General and give them a chance to provide feedback. The Chairman must testify before the named committees about the report.
The bill also requires annual reports to the same congressional committees: one from the Board on the effectiveness of discount window operations and one from the Boards Inspector General and the CFPB Inspector General on progress implementing the remediation plan. Reports may include a confidential annex for cybersecurity or other sensitive deficiencies.
If enacted, the Federal Reserve would be required to review and improve how it lends short-term liquidity to banks through the discount window. The bill sets deadlines for the review, asks for public comment, and requires a written plan and regular reports to Congress. The bill does not describe specific changes to services or how ordinary consumers would experience them. No publicly available information on direct consumer impacts is included in the bill text.
The bill does not specify funding, appropriations, or estimated costs for carrying out the review, the remediation plan, or the reporting requirements. No publicly available information on costs or funding is provided in the bill text.
No publicly available information on proponents' statements is included in the bill text. The bills provisions show that it aims to evaluate and improve discount window operations, technology and communications, cybersecurity, oversight, coordination with other liquidity providers, and reporting to Congress.
No publicly available information on opponents' statements is included in the bill text.