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.
Federal Reserve Bank of New York Staff Report No. 1137 (Revised March 2026) Key Findings: discount window treatment
(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 Banks often choose to pay high premiums (e
Despite Fed efforts to encourage usage, the DW remains heavily stigmatized. Quick Definition: The Discount Window Discount Window Stigma
If you are looking for a comprehensive research paper on this topic, the most recent and authoritative study is:
Stigma surfaced eight months before the 2023 regional banking crisis and has not significantly subsided since. Other Key Research Papers