The "Discount Window Preparedness Act" amends the Federal Reserve Act to significantly enhance the readiness and accessibility of the Federal Reserve's discount window. Its primary goal is to ensure that depository institutions can efficiently access emergency liquidity, thereby strengthening financial stability. A central provision mandates that eligible depository institutions regularly test their ability to seek advances from the discount window. Institutions with assets greater than $100 billion must test quarterly, while those with assets between $10 billion and $100 billion must test semi-annually, demonstrating operational and technical capacities to borrow in a timely manner and maintain sufficient collateral. The bill directs the Board of Governors of the Federal Reserve System, along with other federal regulators, to promulgate regulations for these testing requirements. These regulations will also incorporate an assessment of discount window readiness into liquidity risk management examinations and provide positive consideration for institutions demonstrating strong access capabilities. Furthermore, the legislation requires the Federal Reserve and Federal Reserve Banks to implement several operational improvements. These include extending access hours until 8 p.m. daily, establishing a secure online platform for advances, standardizing technical specifications, and streamlining collateral transfer between Federal Home Loan Banks and Federal Reserve Banks. Simplified procedures for pledging small business loans as collateral are also mandated. Finally, the bill mandates a review of the Federal Reserve's balance sheet reporting to mitigate market distortions and a comprehensive study to identify additional measures to reduce the stigma associated with discount window borrowing, including pricing and other terms.