Export-Import Bank Of The United States - Ex-Im Bank


DEFINITION of 'Export-Import Bank Of The United States - Ex-Im Bank'

A federal agency responsible for facilitating international trade by financing the purchase of domestic exports and providing guarantees or insurance for foreign lines of credit. The Ex-Im bank was created in 1934, after congress established it to be the official export credit agency in the United States.

BREAKING DOWN 'Export-Import Bank Of The United States - Ex-Im Bank'

The Ex-Im bank was designed not to compete with private sector lending in the United States. Instead, the agency looks to accept the political or commercial risks that private businesses tend to avoid. The Ex-Im offers insurance against foreign default, guarantees letters of credit extended by foreign banks and provides loans to potential export purchasers.

Around 85% of Ex-Im's transactions involve American small businesses, because the bank provides no restrictions to the size of the transaction.

  1. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
  2. Private Export Funding Corporation ...

    A single corporation created by the U.S. Treasury and the Export-Import ...
  3. Foreign Credit Insurance Association ...

    A federal agency that provides insurance for U.S. exporters. ...
  4. Export

    A function of international trade whereby goods produced in one ...
  5. Political Risk

    The risk that an investment's returns could suffer as a result ...
  6. Default Risk

    The event in which companies or individuals will be unable to ...
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