Banking. Lombard loans (LC) (most important)

Lecture notes, cheat sheets
Free library / Directory / Lecture notes, cheat sheets

Banking. Lombard loans (LC) (most important)

Lecture notes, cheat sheets

Table of contents (expand)

Topic 14. Lombard loans (LC)

LK is a form of short-term loan, which is provided as collateral of easily realizable assets. Subjects of collateral under LC can be:

1) Securities, including government bonds, shares of financially stable JSCs, promissory notes of strong issuers, etc. The attractiveness of this pledge from the bank’s point of view is related to:

▪ low storage costs;

▪ the availability of satisfactory methods for determining their current value;

▪ possibility of fairly quick sale on the stock market;

▪ the possibility, in accordance with the agreement, of using incoming dividends from the Central Bank (dividends, interest) as an additional source for repaying debt.

2) Goods and commodity documents (warehouse receipts) It is advisable to use liquid and competitive goods as collateral, since in this case the goods remain in the safe custody of the bank, the most important element of risk reduction is their insurance at the expense of the pledger in favor of the bank.

3) Precious metals (gold bars, silver bars, etc.), but to work with them, the bank must hire quality assessors. The bank must have a special license for operations with precious metals.

4) LC secured by various financial claims - savings deposits, claims for payment of wages.

Under LK, creditors are:

1) The Central Bank, which provides LC to commercial banks on the security of state securities.

2) Commercial banks when lending to their clients.

3) Other commercial organizations

LK borrowers:

1) Commercial banks

2) Enterprises, organizations operating on a commercial basis

3) Individuals

In order to reduce credit risk in case of LK, the collateral is valued below the value from 50 to 90% of the value, taking into account the following factors:

1) Type of security, the possibility of its rapid implementation.

2) Costs associated with the sale of the subject of pledge.

3) The cost of storing the collateral.

4) Level of loan interest

5) Possible expenses for compensation of balance losses in case of non-fulfillment of obligations by the borrower.

The LC is drawn up by a loan agreement and a pledge agreement, which indicates the amount of the valuation of the pledged property and the procedure for reimbursing the borrower's obligations to the bank at the expense of it.

Lombard rates may include:

1) rate on one-day settlement loans (overnight)

2) rate on intraday settlement loans

3) Lombard rates for a period of 3 to 30 days

Authors: Shevchuk D.A., Shevchuk V.A.

<< Back: Banking policy (BP) and the scope of its implementation

>> Forward: The concept of commercial bank liquidity

We recommend interesting articles Section Lecture notes, cheat sheets:

▪ Crisis management. Lecture notes

▪ Accounting. Lecture notes

▪ Economics and sociology of labor. Crib

See other articles Section Lecture notes, cheat sheets.

Read and write useful comments on this article.

<< Back

Latest news of science and technology, new electronics:

The existence of an entropy rule for quantum entanglement has been proven 09.05.2024

Quantum mechanics continues to amaze us with its mysterious phenomena and unexpected discoveries. Recently, Bartosz Regula from the RIKEN Center for Quantum Computing and Ludovico Lamy from the University of Amsterdam presented a new discovery that concerns quantum entanglement and its relation to entropy. Quantum entanglement plays an important role in modern quantum information science and technology. However, the complexity of its structure makes understanding and managing it challenging. Regulus and Lamy's discovery shows that quantum entanglement follows an entropy rule similar to that for classical systems. This discovery opens new perspectives in the field of quantum information science and technology, deepening our understanding of quantum entanglement and its connection to thermodynamics. The results of the study indicate the possibility of reversibility of entanglement transformations, which could greatly simplify their use in various quantum technologies. Opening a new rule ... >>

Mini air conditioner Sony Reon Pocket 5 09.05.2024

Summer is a time for relaxation and travel, but often the heat can turn this time into an unbearable torment. Meet a new product from Sony - the Reon Pocket 5 mini-air conditioner, which promises to make summer more comfortable for its users. Sony has introduced a unique device - the Reon Pocket 5 mini-conditioner, which provides body cooling on hot days. With it, users can enjoy coolness anytime, anywhere by simply wearing it around their neck. This mini air conditioner is equipped with automatic adjustment of operating modes, as well as temperature and humidity sensors. Thanks to innovative technologies, Reon Pocket 5 adjusts its operation depending on the user's activity and environmental conditions. Users can easily adjust the temperature using a dedicated mobile app connected via Bluetooth. Additionally, specially designed T-shirts and shorts are available for convenience, to which a mini air conditioner can be attached. The device can oh ... >>

Energy from space for Starship 08.05.2024

Producing solar energy in space is becoming more feasible with the advent of new technologies and the development of space programs. The head of the startup Virtus Solis shared his vision of using SpaceX's Starship to create orbital power plants capable of powering the Earth. Startup Virtus Solis has unveiled an ambitious project to create orbital power plants using SpaceX's Starship. This idea could significantly change the field of solar energy production, making it more accessible and cheaper. The core of the startup's plan is to reduce the cost of launching satellites into space using Starship. This technological breakthrough is expected to make solar energy production in space more competitive with traditional energy sources. Virtual Solis plans to build large photovoltaic panels in orbit, using Starship to deliver the necessary equipment. However, one of the key challenges ... >>

Random news from the Archive

Mornsun LD/R2 ultra-compact power supplies 14.04.2021

Mornsun has updated its popular LD(LDE) board mount line of miniature AC/DC converters with the next generation LD/R2 family. A feature of the new AC / DC is a reduced size and reduced cost compared to its predecessors.

IP with power of 3, 5, 10, 15, 20 W operate in an extended input voltage range of 85...305 V (AC) at temperatures from -40 to +85ºC and have reinforced isolation "input-output" 4000 V (AC). According to EMC, the power supplies correspond to class B (CISPR32 / EN55032) and are equipped with built-in protection against exceeding Uout, against overload and short circuit; power consumption at XX - less than 100 mW. There is a choice of models for mounting on the chassis (with terminals) and on the DIN rail. The above parameters make it possible to consider the LD/R2 IP as one of the best in its class.

The products are designed for industrial automation and control devices, for use in smart home systems, IoT applications and anywhere a compact power supply with good EMC and high performance is needed.

Other interesting news:

▪ Canned Coconuts

▪ Even one cigarette a day is very dangerous for health

▪ Biofilms in syringes for contouring

▪ Aqua Computer Kryographics Next full coverage water blocks

▪ 3D printer with voice control

News feed of science and technology, new electronics

Interesting materials of the Free Technical Library:

▪ section of the site Encyclopedia of radio electronics and electrical engineering. Article selection

▪ article The luxury of human communication. Popular expression

▪ article Why did Zeus give the nereid Thetis as a wife to a mortal? Detailed answer

▪ Article Starvation. Tourist tips

▪ article Metal detector controls. Encyclopedia of radio electronics and electrical engineering

▪ article Powerful rectifier-limiting diodes of the KD2972 series. Encyclopedia of radio electronics and electrical engineering

Leave your comment on this article:

All languages of this page

Home page | Library | Articles | Website map | Site Reviews