Fed's Jefferson outlines discount window upgrades, citing online portal and simpler loan pledging
The Federal Reserve is streamlining its discount window lending program for banks, and its vice chair says banks now use an online portal for most requests.
What we know
- Federal Reserve Vice Chair Philip N. Jefferson spoke on discount window modernization and Treasury market functioning on Sept. 22, 2026, at the Treasury Market Conference at the Federal Reserve Bank of New York. [1] [2]
- Jefferson said more than 60 percent of discount window loan requests now come through Discount Window Direct, an online portal launched in 2024. [2]
- Jefferson said the Reserve Banks earlier this month simplified how banks pledge loans as collateral, with simpler forms, faster enrollment and automated pledged loan lists. [2]
Federal Reserve Vice Chair Philip N. Jefferson said the Fed is modernizing its discount window, the lending program that gives banks access to liquidity. In a Sept. 23 post on X, the Federal Reserve said Jefferson delivered remarks on the topic on Sept. 22. [1]
Jefferson spoke at the 2026 U.S. Treasury Market Conference at the Federal Reserve Bank of New York. Jefferson said the Reserve Banks operate the discount window in their districts, while the Board of Governors provides oversight and sets policy through regulations and guidance. [2]
Jefferson said the Fed's work falls along three lines: business process improvements, automation enhancements, and coordination with the Federal Home Loan Banks. Jefferson said the Federal Reserve and the Home Loan Bank systems share the goal of supporting the stability and resilience of the U.S. banking system. [2]
On business processes, Jefferson said all Fed districts use the same collateral framework, common loan valuation models and processing technology, and accept electronic signatures. Earlier this month, Jefferson said, the Reserve Banks changed how banks pledge loans as collateral, so eligible institutions can pledge several loan types while keeping possession of them. [2]
On automation, Jefferson said the Fed launched Discount Window Direct in 2024. Banks can use the portal to request loans, make payments, view loan and collateral information, and submit collateral files. Jefferson said users report that borrowing is faster and easier, and that over 60 percent of loan requests now go through it. [2]
Jefferson said the System gathered feedback through a 2024 request for information from the Board and through outreach to banks. Jefferson also said that although notable progress has been made, important work remains. [2]
Jefferson said the Board's oversight of discount window policy falls under Jefferson's role as Oversight Governor for the Division of Monetary Affairs. [2]
RECEIPTS · 2 SOURCES
- 1POST ON X · @federalreserve (Federal Reserve)On September 22, 2026, Vice Chair Jefferson delivered remarks on discount window modernization and Treasury market functioning: https://t.coOpen source ↗ Archived copy
- 2OFFICIAL STATEMENT · www.federalreserve.govwww.federalreserve.govOpen source ↗ Archived copy