Lombard rate

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Lombard rate

Applies mainly to international equities. Interest rate the German Bundesbank uses as an upper limit to the day-to-day money rate, since no bank will pay higher rates in the money market than it has to pay for very short-term recourse to Lombard credit.

Lombard Rate

The interest rate the Deutsche Bundesbank charges other banks for collateralized loan obligations. Previously, the Lombard rate could be raised or lowered in keeping with Germany's monetary policy. However, since the euro came into being, Germany no longer controls its own monetary policy.

Lombard rate

The rate of interest at which the Bundesbank, Germany's central bank, lends funds to the country's commercial banks. The Lombard rate is an important indicator of Germany's monetary policy.
References in periodicals archive ?
Based on variation of the discount or Lombard rates, the Central Bank may influence credit demand by banks and by the private sector.
Lombard rates have varied from 25 to 200 basis points above the central bank's target policy rate or related money market rates.
The central bank said the refinancing rate and Lombard rates for all maturities were being raised from 50 per cent, placing them at their highest since February 1996.
Until mid-August 1991, the Bundesbank left the discount and lombard rates unchanged, while the repo rate steadily edged up toward the lombard rate of 9 percent.
The Austrian national bank lowers the discount and Lombard rates by 0.
Following the Bundesbank's rate reduction, in mid-May, the Austrian discount and the Lombard rates were lowered to 4 1/2 and 5 1/2 per cent, respectively.
Between February and July 1993, the discount and Lombard rates have been reduced in several steps to 6 3/4 per cent and 8 1/4 per cent respectively (cf.
Moreover, it increased discount and lombard rates on several occasions, introduced a flexible lombard rate[13] at 1 percentage point above the call-money rate in the Spring of 1989, and raised this mark-up to 2 percentage points in December 1989.
On April 18, the Bundesbank announced that it would cut its discount and Lombard rates, effectively lowering the range within which German money market rates fluctuate.
New legislation adopted in February 1992 makes the Bank of Italy fully independent of the government in setting the discount and Lombard rates.
In addition, on August 24 the Bundesbank reduced both its discount and Lombard rates 50 basis points, to 3.
With monetary policy centred on the linkage of the schilling to the Deutschemark, both the discount and the Lombard rates were raised in line with those in Germany in December.