DEFINITION of 'European Investment Bank - EIB'

A non-profit European Union institution based in Luxembourg that makes loans, makes guarantees, provides technical assistance and provides venture capital for business projects that are expected to further EU policy objectives. While 90% of European Investment Bank (EIB) lending occurs within the EU, 10% occurs in outside markets such as Southeast Europe and Iceland. The bank's shareholders are the 27 EU countries.

BREAKING DOWN 'European Investment Bank - EIB'

EIB loans are funded through borrowing on capital markets. The EIB says it prefers to use its loans to support small and medium-sized businesses, less-developed European countries, environmental improvement and sustainability, energy security, Trans-European networks and knowledge economy projects. Borrowers often use EIB financing in conjunction with third-party financing, and in fact, the EIB commitment can help attract this additional financing.

RELATED TERMS
  1. Guaranteed Loan

    A loan guaranteed by a third party in the event that the borrower ...
  2. Iceland Stock Exchange – ICEX

    A stock exchange located in Reykjavik, Iceland. The Iceland Stock ...
  3. Excess Loans

    A loan made by a state chartered or national bank to an individual ...
  4. Loan Loss Provision

    An expense set aside as an allowance for bad loans (customer ...
  5. Lender

    Someone who makes funds available to another with the expectation ...
  6. Term Loan

    A loan from a bank for a specific amount that has a specified ...
Related Articles
  1. Financial Advisor

    S&P Downgrades Volkswagen’s Credit Rating

    In the aftermath of Volkswagen’s carbon emission scandal, S&P Ratings has downgraded the company’s long term and short term corporate credit rating by one notch from A to A minus.
  2. Retirement

    Retire In Iceland With $200,000 of Savings?

    Iceland isn't cheap. Yet, by eating and drinking local products, ditching the car and flying budget airlines, affordable retirement may just be feasible.
  3. Small Business

    Steps to Qualify For a Small Business Loan

    Learn steps to qualify for a small business loan such as identifying financing needs, preparing a business plan and getting required documents.
  4. Retirement

    How Much Money Do You Need to Retire in Iceland?

    Dreaming about retiring in this beautiful, mysterious country? Here’s how much your major expenditures – housing, healthcare and more – might cost.
  5. Insights

    An Introduction to Government Loans

    Government loans further policymakers' efforts to create positive social outcomes by offering timely access to capital for qualified candidates.
  6. Personal Finance

    How Banks Set Interest Rates on Your Loans

    Many factors go into how banks set interest rates for loans. Use this information to negotiate the best possible rate when you're borrowing.
  7. Personal Finance

    Personal Loans: To Lend Or Not To Lend?

    Attempting to help a loved one with a cash loan can put a strain on your relationship - and your bank account.
  8. Small Business

    Able Lending, Inc.

    Able Lending provides economical loans to small businesses and has become the least expensive provider of online business loans in the country.
  9. Investing

    The 4 Best Websites For Small Business Loans (EBAY, PYPL)

    Discover some of the best websites that small business owners utilize to obtain necessary financing at competitive interest rates.
RELATED FAQS
  1. What is the difference between a bank guarantee and a bond?

    Understand what a bank guarantee is and what a bond is, and which one is a debt instrument. Learn the differences between ... Read Answer >>
  2. How does a credit crunch occur?

    A credit crunch occurs when there is a lack of funds available in the credit market, making it difficult for borrowers to ... Read Answer >>
  3. How is a bank guarantee different from a traditional loan?

    Read about the differences between a traditional bank loan and a bank guarantee, and why a third party might require a guarantee ... Read Answer >>
  4. Are secured personal loans better than unsecured loans?

    Read about the differences between secured loans and unsecured loans and how they are used. Learn about forms of collateral ... Read Answer >>
  5. How is venture capital different from other kinds of equity financing?

    Learn how venture capital equity financing differs from other funding options and what companies need to be aware of prior ... Read Answer >>
  6. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
Hot Definitions
  1. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  2. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  3. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  4. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  5. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
  6. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
Trading Center