The Reluctance to Borrow from the Fed

Posted: 24 Aug 2001


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

Furfine, Craig, The Reluctance to Borrow from the Fed. Available at SSRN:

Craig Furfine (Contact Author)

Kellogg School of Management - Department of Finance ( email )

Evanston, IL 60208
United States

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