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. Iceland Stock Exchange – ICEX

    A stock exchange located in Reykjavik, Iceland. The Iceland Stock ...
  2. Loan Officer

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

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

    A period of time when banks either do not have excess money to ...
  5. Loan Committee

    The lending or management committee of a bank or other lending ...
  6. European Central Bank - ECB

    The central bank responsible for the monetary system of the European ...
Related Articles
  1. 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.
  2. 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.
  3. 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.
  4. Investing

    What is the European Union?

    The European Union is a group of European countries that participate as one unit in the global economy, and who mostly operate under one currency.
  5. 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.
  6. Insights

    Lending Slowdown Casts Shadow Over Economy, Banks

    Dead Money: Business loans are growing at the slowest pace in nearly six years amid rising rates
  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. Personal Finance

    Personal Loans vs. Car Loans

    How to tell whether a personal loan or a car loan is better for you.
RELATED FAQS
  1. 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 >>
  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. 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. Short Covering

    Short covering is buying back borrowed securities in order to close an open short position.
  2. Covariance

    A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns ...
  3. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  4. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  5. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  6. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
Trading Center