Discount Window Preparedness Act

The Discount Window Preparedness Act requires banks and credit unions to prove they can quickly borrow emergency funds from the Federal Reserve by conducting regular operational tests and maintaining sufficient collateral. To support this, the bill mandates that regulators create new rules for testing frequency based on bank size, such as quarterly checks for the largest institutions, and integrates these readiness assessments into routine safety examinations. The legislation also directs the Federal Reserve to upgrade its systems by extending borrowing hours to 8 p.m., launching an online platform for faster access, and simplifying the process for using small business loans as collateral. Additionally, the act calls for a review of how the Federal Reserve reports its borrowing data to prevent market speculation and requires a study on ways to reduce the stigma banks feel when seeking these funds.