Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309167 
Year of Publication: 
2024
Series/Report no.: 
Staff Reports No. 1137
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
We study Discount Window (DW) stigma, the reluctance to access the Federal Reserve's lender-of-last-resort facility, between 2014 and 2024. Despite increased usage since 2020, we find conclusive evidence that the DW is stigmatized, especially among smaller banks and when financial markets experience disruptions. In particular, evidence of DW stigma emerged months before the 2023 banking turmoil and had not subsided a year later. We also identify new determinants and consequences of DW stigma. The implications of these results for the provision of emergency liquidity are discussed.
Subjects: 
discount window
lender of last resort
stigma
JEL: 
E52
G21
G28
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.