Bringing the Discount Window into the 21st Century Act

Key Points

• Congress is requiring the Federal Reserve to overhaul the "discount window," which is the emergency system banks use to borrow money from the government when they run low on cash.
• The plan focuses on updating old technology and communication systems so the government can move money faster during a financial crisis or a sudden bank run caused by mobile banking apps.
• The Federal Reserve will look into expanding the hours this lending service is open to better match modern 24/7 banking and instant payment systems.
• A major goal is to reduce the embarrassment or "stigma" banks feel when borrowing from the government, which often stops them from asking for help until a small problem becomes a major crisis.
• The Federal Reserve must complete a full review of its lending programs within 240 days and create a specific plan to fix any technology or security weaknesses it finds.
• To ensure the work gets done, the Federal Reserve and its watchdog must send annual progress reports to Congress until all the modern updates are fully finished.