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.
Investment dictionary. Academic. 2012.