Discount Window Treatment <OFFICIAL × MANUAL>

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

(2024): Explores why banks use the window outside of crises, noting that smaller banks with illiquid portfolios are the most frequent users. discount window treatment

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. Federal Reserve Bank of New York Staff Report No

Despite Fed efforts to encourage usage, the DW remains heavily stigmatized. Despite Fed efforts to encourage usage, the DW

Stigma surfaced eight months before the 2023 regional banking crisis and has not significantly subsided since. Other Key Research Papers

(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

If you are looking for a comprehensive research paper on this topic, the most recent and authoritative study is: