Lombard theorem

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The Lombard rate is an interest rate set by a central bank as part of its Lombard policy , at which credit institutions can obtain short-term liquidity within the framework of the Lombard loan by pledging their own securities with the central bank . The price they pay is the Lombard rate, which is calculated as a discount from the nominal value of the pledged securities. The name is derived from the Maison de Lombard , a Parisian pawnshop that was operated by the privileged Florentine banking house Compagnia dei Bardi .

history

The main aim of the Bundesbank's policy was to control the credit supply behavior of banks and the demand for money and credit in the economy indirectly through changes in bank liquidity and interest rates on the money market . This was derived from § 15 BBankG a. F., who granted the Bundesbank the right to set the discount and lombard rates to influence the flow of money and the granting of credit. For a long time, Lombard business was the most important source of refinancing for German commercial banks alongside the Bundesbank's (re-) discount business. The (re-) discount volume reached its peak in 1979/1980 and became the decisive source of central bank money supply .

The discount rate played until 1986, the decisive role in the refinancing of credit institutions by the Bundesbank and the interest rate , because the banks could be through the sale of federal bankable Jump obtain liquidity at the discount rate. In December 1986 the share of discount credit in borrowing had fallen to 60%. Since 1987 the discounting of bills of exchange had lost its importance, so that the Lombard rate came to the fore. In comparison to the new open market policy instruments of the Bundesbank, bill refinancing gradually took a back seat; Their share of total central bank loans was only 29.5% in 1994, compared to 83.5% in 1980. They were replaced by repo transactions . While their share of total refinancing was only 6% in 1980, in 1994 they made up 69.7%.

In Germany, the Lombard rate was set by the Deutsche Bundesbank until December 1998 . It was usually one to two percentage points above the discount rate.

Todays situation

With the transfer of responsibility for monetary policy to the European Central Bank in January 1999, the marginal lending rate (SRF) replaced the Lombard rate.

See also

Web links

Individual evidence

  1. ↑ The Bundesbank's monetary policy , Deutsche Bundesbank, October 1995, p. 98 (PDF; 3.2 MB)
  2. ↑ a b Otmar Issing / Bernd Rudolph, Der Rediskontkredit , 1988, p. 41 f. (PDF; 6.8 MB)
  3. ↑ Werner Ehrlicher / Diethard B. Simmert, Changes in the monetary policy instruments of the Deutsche Bundesbank , 1988, p. 134.
  4. ^ The Bundesbank's monetary policy , Deutsche Bundesbank, October 1995, p. 109.