Simple to fix the Fed corridor rule

The Fed's New Repo Plan

In summary, the discussion in the blog link is about the stigma of the discount window.  The Fed wants a better representative sample of borrowers (and depositors).

If the Fed wants a corridor, then make one on the interbank market, on behalf of Fed account holders. The Fed has to intervene, become market maker, this is an easy method, give the Fed the right to intervene in the inter bank market, on behalf of its members. 

The Fed has the same problem every time, getting a risk adjusted, representative sample. The market intervention, or market making function is the easy part.

On the interbank market the central bank is free to manage its corridor, padding the loans and deposits as needed. It is overnight, the short end has no time element. All the central banks are free to intervene in the overnight  interbank market, with a little rule change.

It is not stigma, all banks equally uncertain.