H.R. 3390 — Bringing the Discount Window into the 21st Century Act

This section directs the Board of Governors of the Federal Reserve System to commence a review of discount window operations (i.e., the Federal Reserve's lending facility providing short-term liquidity to depository institutions, including during financial stress) within 60 days of enactment and complete it within 240 days. The review must assess (1) the discount window's effectiveness in providing liquidity; (2) technology infrastructure and communications; (3) cybersecurity; (4) interagency communications; (5) Board oversight and consistent access; (6) interactions with other liquidity providers such as Federal Home Loan Banks; (7) operating hours and potential expansion in coordination with Fedwire Funds Service and FedNow Service; (8) impacts of mobile banking and instant communications on liquidity risk and the discount window's role in addressing it; and (9) stigma reduction and improvements in access, efficiency, transparency, timeliness, pricing, and terms. Following the review, the Board must develop a remediation plan, in consultation with Federal Reserve Banks, identifying deficiencies and enhancements with specified actions, timelines, milestones, and ongoing maintenance measures. Not later than 365 days after enactment, the Board must submit to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs a report containing the review findings and remediation plan—after consulting the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Treasury Secretary—and the Chairman must testify on it at the required semi-annual hearing under section 2B of the Federal Reserve Act. The Board must submit annual reports to the committees on discount window effectiveness and remediation progress, and the Inspector General of the Board and the Bureau of Consumer Financial Protection must submit annual reports on implementation progress. Reports may include confidential annexes for sensitive information on monetary policy, financial stability, cybersecurity, or institution-specific risks. The provision sunsets upon the Board's notification to Congress and public website publication that the remediation plan is fully implemented.