Bringing the Discount Window into the 21st Century Act

New review topic (viii) requires the Board to examine the impact of mobile banking and instant communications technology on depositor behavior and liquidity risk, and how the discount window can help institutions respond to rapid liquidity shortfalls and prevent broader financial instability.

New review topic (ix) requires examination of the stigma associated with discount window usage, ways to reduce that stigma, and ways to improve access, operational efficiency, transparency, timeliness, pricing, and other terms for institutions seeking advances.

The communications review (item iv) was expanded from covering only communications between Federal reserve banks to also include financial institutions, the Board of Governors, the FDIC, the Comptroller of the Currency, and the Secretary of the Treasury.

The public comment requirement was entirely removed. The introduced version required the Board to provide the public an opportunity to comment on discount window effectiveness and offer suggestions; this is absent in the engrossed version.

The remediation plan no longer requires approval by a vote of the Board of Governors. Instead, the Board must act 'in consultation with the Federal reserve banks,' removing the formal voting requirement and adding a consultation obligation.

The oversight review (item v) now includes a requirement to assess whether the Board ensures 'consistent access to the discount window across the Federal Reserve System,' adding a new consistency standard.

The Board's annual report now must include a progress report on actions taken to implement the identified enhancements, adding an ongoing accountability element beyond the initial review.

Consultation before the report to Congress now goes to the Comptroller of the Currency, the FDIC, and the Secretary of the Treasury, replacing the previous requirement to consult with the Comptroller General (GAO) and the Inspector General. This shifts pre-report review from oversight/accountability bodies to peer regulatory agencies.

The report to Congress no longer requires prior approval by a vote of the Board of Governors, lowering the internal governance threshold for submission.

The confidentiality provision was broadened from covering cybersecurity deficiencies and deficiencies that could cause financial instability to a two-part test: information that could impact monetary policy, financial stability, or cybersecurity, OR significantly endanger the financial stability of any financial institution.

A new self-repealing sunset provision (subparagraph G) requires the entire paragraph to be repealed when the Board notifies Congress and publishes on a public website that the remediation plan has been fully implemented, creating a built-in expiration mechanism.

Testimony requirement changed from testifying before both committees specifically to testifying at the semi-annual hearing required under section 2B of the Federal Reserve Act, tying it to an existing statutory hearing schedule.