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.