Discount Window Preparedness Act
Sponsored By: Senator Warner, Mark R. [D-VA]
Introduced
Summary
This bill would require depository institutions to demonstrate they can quickly borrow from the Federal Reserve's discount window and build formal readiness programs. It would also push regulators to standardize and automate discount-window operations to reduce stigma and speed access.
Show full summary
- Banks over $100 billion in assets would have to test borrowing readiness at least quarterly. Banks with $10 billion to $100 billion would have to test at least semiannually and put annual liquidity plans under management review and supervisory reporting.
- Smaller banks and credit unions would get simplified procedures to pledge small business loans as collateral and a Fed outreach program to provide technical assistance.
- The Federal Reserve would be required to extend access hours to 8 p.m. in each U.S. time zone, create a secure online platform to automate approvals, standardize operations across Reserve Banks, and review balance-sheet reporting to reduce market distortions.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
Discount window readiness for banks
This bill would require depository institutions eligible for discount window advances to run readiness tests and keep pledged collateral. Regulators would issue rules within 180 days. Banks with more than $100 billion in assets would test at least quarterly. Banks with $10 billion to $100 billion would test at least every six months. Within one year each covered institution would have to demonstrate it can borrow quickly. Management would approve liquidity plans yearly and send a report of the review to the Board, the bank's Reserve Bank, and the primary regulator. Examiners would include readiness in liquidity exams and give positive supervisory consideration.
Faster online access and collateral rules
This bill would require the Federal Reserve to build a secure online platform so eligible banks can request advances. The Fed would automate primary credit approval when appropriate collateral is pledged. Reserve Bank operations would be extended so institutions can obtain advances until at least 8 p.m. in each U.S. time zone. The Fed would standardize technical procedures and make transfers of collateral with Federal Home Loan Banks faster and consistent. The bill would simplify pledging of small business loans as collateral, especially for smaller institutions. The Fed would start a funded outreach and technical assistance program for smaller banks within 180 days.
Federal Reserve weekly balance reporting
This bill would require the Board to review its weekly balance-sheet reporting, including advances, within 270 days. The review would pay special attention to district-level data and effects of section 11(s) disclosures. Within 90 days after the review ends, the Board would revise reporting policies as needed. The Board may recommend statutory changes to Congress if necessary.
Reduce stigma with flexible advance rules
This bill would let the Board allow Reserve Banks to vary advance size, term, and timing to reduce stigma. The Board would have to consult affected institutions and avoid undue burdens. The Board would also complete a study, with OCC, FDIC, and NCUA, on pricing and terms of advances and other changes to reduce stigma. That study and a report to relevant Congressional committees would be due within one year after enactment.
Sponsors & CoSponsors
Sponsor
Warner, Mark R. [D-VA]
VA • D
Cosponsors
Sen. Kennedy, John [R-LA]
LA • R
Sponsored 5/20/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov