Bringing the Discount Window into the 21st Century Act

This bill would require the Federal Reserve Board to conduct a formal review and create a remediation plan for the discount window lending program, which provides liquidity to depository institutions. The review would evaluate the program's technology infrastructure, operating hours, and coordination with other liquidity providers during both stable and distressed financial periods. The Federal Reserve would be required to address any identified deficiencies through a board-approved plan and provide annual progress reports to Congress.

This bill primarily affects the Board of Governors of the Federal Reserve System, which is required to review and remediate its discount window lending program. Depository institutions that utilize these loans for security and liquidity are also affected by potential changes to technology infrastructure and operating hours. Additionally, the bill impacts other liquidity providers that interact with the discount window during both normal operations and periods of financial distress.

• Review of discount window lending program. The Board of Governors of the Federal Reserve System must conduct a review of the discount window program, which provides liquidity and security loans to depository institutions.
• Assessment of infrastructure and operations. The review must evaluate the program's technology infrastructure, the effectiveness of current operating hours, and how the discount window coordinates with other liquidity providers during both stable and distressed financial periods.
• Development of a remediation plan. The Board is required to develop and approve a plan to address identified deficiencies, including specific implementation timelines and milestones.
• Annual reporting to Congress. The bill mandates that the Board submit annual reports to Congress regarding the progress and status of the remediation plan.

The bill directs the Board of Governors of the Federal Reserve System to review and remediate the existing discount window lending program, which provides liquidity and security loans to depository institutions. It requires the Board to evaluate and update the program's current technology infrastructure, operating hours, and coordination with other liquidity providers.

The bill aims to modernize the Federal Reserve's discount window lending program by requiring a comprehensive review of its technology infrastructure and operating hours. It intends to ensure the program effectively supports the security and liquidity of depository institutions during both normal operations and periods of financial distress.