The Effektenlombardkredit is a Lombardkredit, which is secured by pledge right at (stock exchangable) the securities (effects) of a deposit of securities. It serves as a rule the financing of the purchase of securities. A lever effect (also Leverage effect called) is obtained by the partial financing by borrowing of the securities. This can lift the net yield of the deposit of securities strongly (or the losses starkt to increase). The Effektenlombardkredit is a bank overdraft.
The securities in the depot are evaluated of the bank not fully but only up to certain credit lines as credit security. If the total value of the depot under the recourse to of the credit, determined in accordance with bank criteria, falls exists a liability to pay an additional amount. If the customer of this liability to pay an additional amount does not follow, the bank is justified to sell parts of the depot.
The Effektenlombardkredit is offered as standardized bank product mainly private customers.
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