European Investment Bank - EIB


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.

  1. Investment Banker

    Someone working at an institution raising capital for companies, ...
  2. European Economic and Monetary ...

    The successor to the European Monetary System (EMS), the combination ...
  3. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  4. European Financial Stability Facility ...

    An organization created by the European Union to provide assistance ...
  5. Merchant Bank

    A bank that deals mostly in (but is not limited to) international ...
  6. Retail Banking

    Typical mass-market banking in which individual customers use ...
Related Articles
  1. Insurance

    The Rise Of The Modern Investment Bank

    Get to know a little bit about the institutions whose actions help to guide free markets.
  2. Fundamental Analysis

    Introduction To Institutional Investing

    Investopedia explains: Learn about institutional investing and all of the major players in this field.
  3. Professionals

    Wanna Be A Bigwig? Try Investment Banking

    A career in this high-stress field can be very rewarding for the right person. Find out if you have what it takes.
  4. Forex Education

    The 3 Biggest Risks Faced By International Investors

    Investing internationally is a great way to diversify your portfolio, but you need to know the risks.
  5. Professionals

    The Series 79 Exam: What It Is And When You Need It

    If you're getting into the field of investment banking, you'll need to know all about the Series 79.
  6. Professionals

    Career Advice: Investment Banking Vs. Corporate Finance

    Read an in-depth review and comparison of a career in investment banking and a career in corporate finance, with advice about which one to choose.
  7. Investing

    Middle Market Investment Banks

    We take a close look at investment banks working with middle market companies.
  8. Fundamental Analysis

    Top Reasons IPO Valuations Miss The Mark

    The costly services of investment banks don’t necessarily guarantee accuracy in IPO pricing.
  9. Investing

    Top Investment Banks In The Real Estate Industry

    The real estate market relies on capital provided by large global investment banks.
  10. Professionals

    Career Advice: Investment Banking Vs. Investment Management

    Review an in-depth comparison between investment banking and investment management, their respective career paths and which one you should choose.
  1. How does investment banking differ from commercial banking?

    Investment banking and commercial banking are two primary segments of the banking industry. Investment banks facilitate the ... Read Full Answer >>
  2. What types of companies hire a chartered financial analyst (CFA)?

    The Chartered Financial Analyst, or CFA, program is a professional certification awarded by the CFA Institute. CFA candidates ... Read Full Answer >>
  3. What are the major categories of financial institutions and what are their primary ...

    In today's financial services marketplace, a financial institution exists to provide a wide variety of deposit, lending and ... Read Full Answer >>
  4. What's the difference between investment banks and commercial banks?

    Investment banking and commercial banking are two divisions of the banking industry that provide substantially different ... Read Full Answer >>
  5. Who facilitates buying and selling on the primary market?

    There are several important actors that facilitate buying and selling on the primary market, the home of initial public offerings ... Read Full Answer >>
  6. What is the difference between an investment and a retail bank?

    The activities and types of clients for an investment bank versus those for a retail bank highlight the primary difference ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  2. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  3. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  4. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Capitalized Cost

    An expense that is added to the cost basis of a fixed asset on a company's balance sheet. Capitalized Costs are incurred ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!