Discount Window Treatment (2024)

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

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

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

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

If you are looking for a comprehensive research paper on this topic, the most recent and authoritative study is: (2025): Uses laboratory experiments to show that once

(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

(2024): Explores why banks use the window outside of crises, noting that smaller banks with illiquid portfolios are the most frequent users. 1137 (Revised March 2026) Key Findings: Stigma surfaced

Olivier Armantier, Marco Cipriani, and Asani Sarkar