Discount Window Treatment 💯 Trusted Source

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

(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 discount window treatment

(2025): Uses laboratory experiments to show that once a facility is stigmatized, it is extremely difficult to "cure" that perception, even with policy changes. (2024): Explores why banks use the window outside

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

Olivier Armantier, Marco Cipriani, and Asani Sarkar

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

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.