The rate of interest usually 1/2 per cent above the discount rate charged by the BUNDESBANK when acting in its capacity as LENDER OF LAST RESORT. Banks can borrow for up to three months against the collateral of certain high-quality securities, which...

Lombard credit is the granting of credit by banks against pledged items, mostly in the form of securities or life insurance policies. The pledged items must be readily sellable. Lending is via central banks, in particular the securities 'eligible for...