Lombard Rate

Filed Under » , ,
Dictionary Says

Definition of 'Lombard Rate'

The rate charged to banks by the German central bank for collateralized loan obligations. A Lombard rate is an interest rate German banks use as upper limit daily money rates. This rate mainly applies to international equities not so much United States equities or equities from other countries. Prior to the Euro, Germany had the authority to control its own monetary policy and raise or lower the Lombard rate, but this no longer holds true.
Investopedia Says

Investopedia explains 'Lombard Rate'

This rate is similar to the discount rate used by the Federal Reserve Bank in the United States. The rate is usually 0.5% above the Bundesbank discount rate. Bundesbank is the central bank of Germany. In Germany, this rate is called the lombardsatz and it is considered a financial market indicator in that country. Also referred as the rate of interest charged on a Lombard loan. A Lombard loan is given in the form of securities and is provided by a financial institution against pledged collateral.
Search results for

'Lombard Rate'

  • Credit Crisis: Government Response | Investopedia

    http://www.investopedia.com/university/credit-crisis/credit-crisis6.asp
    ... crises were established more than 100 years ago in the book "Lombard Street: A ... The
    Fed lowered its key federal funds rate to provide additional liquidity to ...

  • Riding The Market Bubble: Don't Try This At Home

    http://www.investopedia.com/articles/economics/09/investment-bubble.asp
    ... The key to minimizing the effects of a financial crisis seems to rest upon two
    principles, as explained in the book "Lombard Street" (2005 ... Rate data provided by. ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links