(2020): A Richmond Fed Economic Brief that explains how stigma undermines the Fed's role as the "lender of last resort". Quick Definition: The Discount Window Discount Window Stigma After the Global Financial Crisis
Stigma surfaced eight months before the 2023 regional banking crisis and has not significantly subsided since. Other Key Research Papers discount window treatment
If you are looking for a comprehensive research paper on this topic, the most recent and authoritative study is: (2020): A Richmond Fed Economic Brief that explains
(2024): Explores why banks use the window outside of crises, noting that smaller banks with illiquid portfolios are the most frequent users. Banks often choose to pay high premiums (e
Banks often choose to pay high premiums (e.g., 13–44 basis points above the DW rate) to borrow from private markets rather than use the Fed, simply to avoid appearing financially weak.