The Discount Window Enhancement Act of 2024 requires the Federal Reserve to strengthen how banks access emergency borrowing through the Federal Reserve's "discount window," a backstop lending facility. Within one year of enactment, all eligible banks and credit unions must test their ability to borrow from the discount window and demonstrate to their Federal Reserve bank and primary regulator that they have the technical capacity and necessary collateral to do so. Larger banks with assets over $100 billion must conduct quarterly tests, while mid-sized banks with $10-100 billion in assets must test at least twice annually. The Federal Reserve must also modernize the discount window by implementing online access platforms, extending availability to 8 p.m. in all time zones, streamlining collateral procedures, and providing technical assistance to smaller institutions. Within a year, the Federal Reserve must study whether additional changes could reduce the perceived stigma of borrowing from the discount window and report its findings to Congress.
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