Briefing
Understanding Discount Window Stigma
Ennis, Huberto M.; Price, David A. (2020-04)
The discount window is a tool that the Federal Reserve has long used to increase the stability of the financial system, but some believe its effectiveness is diminished by stigma: institutions may avoid borrowing from it out of concern that they may be perceived as being in weakened financial condition. Recent Richmond Fed research has shed new light on the functioning of the discount window and the role that stigma may play in achieving desirable outcomes.
Richmond Fed Economic Brief , Issue 20-04 , Pages 5