Discount Window Treatment -
(2024): Explores why banks use the window outside of crises, noting that smaller banks with illiquid portfolios are the most frequent users.
Federal Reserve Bank of New York Staff Report No. 1137 (Revised March 2026) Key Findings: discount window treatment
If you are looking for a comprehensive research paper on this topic, the most recent and authoritative study is: (2024): Explores why banks use the window outside
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. even with policy changes.
(2025): Uses laboratory experiments to show that once a facility is stigmatized, it is extremely difficult to "cure" that perception, even with policy changes.
