Lombard Credit


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Lombard Credit

Credit extended in exchange for some collateral that remains with the lender. For example, a lender may extend Lombard credit if the borrower pledges jewelry in exchange. The borrower receives the collateral back upon repayment of the loan. Lombard credit may involve retail pawnbrokers, but the Federal Reserve System makes loans to member banks on a similar basis.
References in periodicals archive ?
In case of Zapsibcombank, absence of the Lombard credit rating and potentially low liquidity of the comming loan will likely provide for a more adequate premium (than the lower border of the benchmark) for actually an investment for 1.
For the central bank, a direct connection exists between the extension of intraday credit and discount window or Lombard credit, because a borrower's inability to repay its daylight loan puts the central bank in the position of having to consider converting the loan to an overnight credit.
On the threshold of BFL placement, return of deposits of HPU and Lombard credits of CB, the banks added the remains at regulator's correspondent accounts significantly (+145.
Lombard credits Moodie with helping the younger kids on the team mature quickly this season, the same thing he did as the leader of Littleton's playoff football squad.