Managing Stigma During a Financial Crisis

58 Pages Posted: 5 Feb 2017

See all articles by Sriya Anbil

Sriya Anbil

Board of Governors of the Federal Reserve System

Multiple version iconThere are 2 versions of this paper

Date Written: 2017-02


How should regulators design effective emergency lending facilities to mitigate stigma during a financial crisis? I explore this question using data from an unexpected disclosure of partial lists of banks that secretly borrowed from the lender of last resort during the Great Depression. I find evidence of stigma in that depositors withdrew more deposits from banks included on the lists in comparison with banks left off the lists. However, stigma dissipated for banks that were revealed earlier after subsequent banks were revealed. Overall, the results suggest that an emergency lending facility that never reveals bank identities would mitigate stigma.

Keywords: Great Depression, Central bank, Financial crisis, Stigma

JEL Classification: G01, G21, G28

Suggested Citation

Anbil, Sriya, Managing Stigma During a Financial Crisis (2017-02). FEDS Working Paper No. 2017-007, Available at SSRN: or

Sriya Anbil (Contact Author)

Board of Governors of the Federal Reserve System ( email )

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Washington, DC 20551
United States

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