lombard credit

In recent years, the discount rate has been approximately a percentage point above the federal funds rate (see Lombard credit).

The practice of Lombard credit is still commonly used in central banking, where central banks lend against marketable securities, such as government bonds.

Lombard credit is the granting of credit to banks against pledged items, mostly in the form of securities or life insurance policies.

One prominent role of Lombard credit is in use by the Federal Reserve System of the United States of America.