Last Updated: 8.19.2026

The Federal Reserve is making the discount window faster, easier, and more efficient through automation enhancements and process simplification. Most notably, in 2024 the Federal Reserve launched Discount Window Direct (DWD), an online portal that allows depository institutions to conduct discount window activities electronically.

DWD enables institutions to conduct their discount window activities online. Banks can use DWD to request discount window loans, make payments, pledge collateral, view loan and collateral balances, and message with their local Reserve Bank. The Fed will continue to add new functionality to improve users’ discount window experience.

Additional Improvements

In addition to DWD automation enhancements, the Fed continues to refine its business processes to make discount window borrowing more efficient, consistent, and transparent. Recent improvements include:

• Faster, easier onboarding processes for establishing discount window access
• Electronic signature acceptance for discount window legal agreements at all Reserve Banks
• General acceptance of electronic loan collateral with digital signatures or as digitally imaged files—subject to state law
• Enhanced transparency through updated loan collateral margins displays
• Simplified administration of the Borrower in Custody program for loan collateral (new in September 2026)
• Open for lending until the close of Fedwire (generally 7pm ET, unless extended)

While each Reserve Bank retains discretion over its lending decisions—reflecting the Federal Reserve System’s decentralized structure and the nation’s diverse banking landscape—all Reserve Banks operate within a unified collateral framework, including:

• Use of a single, shared, centrally supported collateral valuation model and universally-applied sets of margins
• Common securities acceptance criteria
• Common loan acceptance criteria with few differences
• Standard collateral pledging formats and processing technology
• Uniform standards for Borrower in Custody loan collateral administration (new in September 2026)

Effective coordination with other bank funding sources both improves the borrower experience and supports financial stability and the efficient implementation of monetary policy. The Federal Reserve is working with the Federal Home Loan Bank (FHLB) System to enhance interoperability among Reserve Banks and FHLBs to reduce operational complexity and improve the member institution experience when positioning collateral in support of both discount window borrowing and FHLB advances.

The Federal Reserve’s discount window improvement efforts are guided by extensive industry engagement, including a Federal Register Notice requesting information and comment on discount window operations, Ask the Fed ® sessions on discount window operational readiness, Federal Reserve district outreach events, and input from our automation early adopter program.

Additional functionality and enhancements will continue to be added to improve the experience of depository institutions at the discount window.