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 Officer

    Representatives of banks, credit unions and other financial institutions ...
  5. Commercial Loan

    A debt-based funding arrangement that a business can set up with ...
  6. Lending Freeze

    A period of time when banks either do not have excess money to ...
Related Articles
  1. Insurance

    Iceland's Near Collapse: What Can We Learn?

    This thriving country was brought to its knees by the rapid growth - and subsequent decline - of its banking industry.
  2. Personal Finance

    Getting Government Loans For Your Small Business

    Would a government loan provide a more cost-effective way to finance your business? See whether your company qualifies for a government loan.
  3. 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.
  4. 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.
  5. Small Business

    Lending Clubs: Better Than Banks?

    If you need to borrow money and your credit is making it tough, this new option may be just what you're looking for.
  6. 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.
  7. Financial Advisor

    The 7 Best Peer-To-Peer Lending Websites (LC)

    A look at some of the most well-known and reputable peer-to-peer lending websites, their business models and successes to date.
  8. Investing

    European Banks: Growth in 2016?

    Understand the potential growth drivers of the European banking sector and whether 2016 will be a year of growth or continued stagnation.
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. Why is Luxembourg considered a tax haven?

    Learn about Luxemburg's role as a tax haven for large corporations around the world. Discover how the country's tax laws ... Read Answer >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  2. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  3. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  4. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
  5. Quasi Contract

    A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center