Liquidity from two lending facilities

Abstract We examine how the threat of disclosure (stigma) changes quality banks that approach emergency lending facilities. study a financial crisis where two confidential facilities were available to banks. Unexpectedly, partial list bank names from one facility was published, suddenly stigmatizing facility. find composition approached each changed, newly stigmatized attracted weaker maintained smaller liquidity buffers, while alternative both and stronger Our results shed light on stigma prevents regulators reaching many inject critical into banking sector during crisis.