The Reluctance to Borrow from the Fed
Posted: 24 Aug 2001
Abstract
Banks prefer borrowing in the federal funds market, even when the Fed offers a confidential, guilt-free, and less expensive alternative. This suggests that commercial banks deliberately avoid borrowing from the central bank.
Keywords: Discount window, special lending facility, federal funds market
JEL Classification: E52, E58, G21
Suggested Citation: Suggested Citation
Furfine, Craig, The Reluctance to Borrow from the Fed. Available at SSRN: https://ssrn.com/abstract=277089
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