Discount Window Direct (DWD) Feature Guide
Background
The Federal Reserve Banks’ Discount Window Direct (DWD) application provides depository institutions with a modernized way to conduct many discount window activities.
Program: DWD is an online portal application that allows depository institutions to request discount window advances (loans) and make prepayments on loans from their respective Federal Reserve Bank (local Reserve Bank). DWD also allows loan collateral files to be uploaded, and secure messaging between the local Reserve Bank and participating depository institutions.
Availability: DWD is generally accessible 24 hours a day, although some capabilities have limited processing hours. Institutions can check loan and collateral balances, and can upload collateral files, at any time day. However, collateral files that are uploaded during non-business hours will be queued and processed the next business day. Discount window advances and payment requests can only be conducted in DWD during the local Reserve Bank’s business hours.
Borrower Eligibility: Generally, a depository institution that has been designated as eligible for Primary or Seasonal Credit that has executed and submitted all necessary documentation and application materials, has received official access and credentials and has pledged acceptable collateral to its local Reserve Bank can use DWD.
Minimum Advance: Requested advances must be $1,000.00 or greater.
Primary Credit: DWD generally supports advances to depository institutions eligible for Primary Credit. DWD currently cannot be used to request Secondary Credit advances.
Seasonal Credit: Generally, depository institutions that have been designated as eligible for Seasonal Credit can use DWD to request advances and make payments.
Posting Time(s): Depository institutions can use DWD to request advances with early posting times. If an early posting time is not requested, loan activity will post according to the default time outlined in the Account Management Guide, currently 7:00 p.m. ET.
Prepayment: Borrowers may prepay advances (including refinancing purposes) at any time without fees or penalties.
Advance Term: Primary and Seasonal Credit advances may have an overnight maturity or a longer maturity based on discount window terms as set by each Reserve Bank.
Fees: There are no fees associated with using DWD or borrowing under Primary Credit or Seasonal Credit. Interest rates will apply.
Messaging and Status Updates: Depository institutions can use the secure message functionality of DWD to initiate communication with their local Reserve Bank and respond to inquiries. Other features include viewing current and historical balances, the status of advances and payments and a list of the depository institution’s authorized individuals in accordance with Operating Circular 10.
Future Functions: The Federal Reserve contemplates future enhancements that include expanded access to reporting, document processing, and administration of the Borrower-in-Custody program.
Self-Service Loan Collateral Feature Guide
In-scope and Out-of-scope Institutions: In-scope and out-of-scope institutions (Off-site) are determined based on characteristics of the pledging institution. An institution is considered in-scope if it meets one of the criteria listed below. All other institutions are considered out-of-scope.
- All depository institutions (12 CFR 201.2(c)(1)) that are controlled (12 CFR 225.2(e)) by a Bank Holding Company (12 CFR 225.2(c)(1)) (including a Financial Holding Company (12 CFR 225.81)) or an Intermediate Holding Company (12 CFR 252.2(y)) with Fifty Billion Dollars ($50,000,000,000) or more in total consolidated assets, defined as the average over the last four calendar quarters;
- All Foreign Banking Organizations (12 CFR 211.21(o)(1));
- All other domestic depository institutions with Fifty Billion Dollars ($50,000,000,000) or more in total consolidated assets, defined as the average over the last four calendar quarters; or
- An institution that voluntarily becomes an in-scope institution. This is a permanent conversion — an in-scope institution cannot become out-of-scope.
In-scope and out-of-scope institutions are subject to different Collateral Schedule file format requirements.
Collateral Schedule Upload: Allows depository institutions to submit their loan Collateral Schedules to their Reserve Bank through DWD, replacing manual submission methods with a digital upload process.
Upload File Button: Clicking this button in the DWD menu bar opens the Collateral Schedule file upload interface, where users can submit their collateral documentation.
Collateral Tab: Navigates users to the main Collateral screen in DWD where collateral related functions and information are centralized, including uploads, withdrawals, and pledging new files.
Collateral Schedule: An Excel or text file containing loan collateral data that must meet specific formatting requirements, including appropriate ID/pledge information in the filename, a single tab per file, and inclusion of the As of Date field for out-of-scope institutions.
As of Date: Establishes the effective date for the collateral data contained in the Collateral Schedule. For out-of-scope institutions, this must be included in the Excel file with the field label in Column A and the date formatted in any Excel date format in Column B of the header.
Cover Letter: A separate cover letter is not required for pledged loan files submitted through DWD. Reserve Banks may continue to require cover letters for email and paper submissions. Contact your local Reserve Bank (Off-site) for additional information.
Deposit New Loan Types: Enables users to submit Collateral Schedules for new loan types that their institution is eligible to pledge. Users select “New” from a dropdown menu to initiate a new pledge file and categorize loans based on the new loan type.
File Type: Determines the format requirements for collateral submissions – either the Excel template for out-of-scope institutions or standard text file format for in-scope institutions. Note that Excel-based credit card receivables pledges cannot be accepted through DWD at this time.
Pledge Information: Collateral Schedules should be saved with the appropriate ID/pledge information for the holding included in the file name.
Withdraw Loan Collateral Holdings: Enables depository institution users to submit requests to withdraw specific loan types from their bank’s active loan collateral pledge holdings. This function should only be used when an entire pledge file needs to be withdrawn.
Review Withdrawal Requests: Allows authorized users to assess loan withdrawal requests and approve or reject them, ensuring proper oversight and accuracy before processing withdrawals.
Select Secondary Withdrawal Approver: Allows users at institutions requiring two authorized individuals in OC 10 to designate a secondary reviewer for loan collateral withdrawals. The secondary reviewer receives an email notification prompting them to review the request.
Withdrawal Messages and Emails: Automated email notifications to users are sent informing them of status changes.