Glossary
- L/E-DAX
- Laspeyres index
- Last price
- Late indices
- Lead brokers
- Lead manager
- Legal Entity Identifier
- Leverage (Warrant)
- Liability for statement made in a propectus (Prospekthaftung)
- Limit
- Limit order
- Line chart
- Liquidity
- Liquidity Category
- Liquidity Classes
- List price
- Listing
- Load (XTF)
- Loan value
- Lockup period
- Lokomarket
- Lombard rate
- Long position
- Low
Lombard rate
Former Interest rate on "Lombard loans" was extended by the Bundesbank. To receive a Lombard loan, the borrowing bank must pledge certain securities.
Banks can borrow money from the German Bundesbank to bridge temporary liquidity gaps by pledging securities as collateral. The Lombard rate in turn determines the interest rate on loans granted by the bank to its credit customers, and thus also influences money market interest rates. In most cases, the Lombard rate is one to two percent higher than the discount rate.
At the beginning of 1999, a comparable interest rate set by the European Central Bank (ECB) replaced the Lombard rate that was previously calculated by the Bundesbank.
Regulations on the eligibility of securities as collateral for Lombard loans are contained in the Bundesbank Act (Bundesbankgesetz, BbankG), section 19 para. 1.
Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.
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