Discount Window Treatment -

(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

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. 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

Federal Reserve Bank of New York Staff Report No. 1137 (Revised March 2026) Key Findings: 1137 (Revised March 2026) Key Findings: (2025): Uses

(2025): Uses laboratory experiments to show that once a facility is stigmatized, it is extremely difficult to "cure" that perception, even with policy changes.