The role of development banks

This chapter examines the principles of accountability applied by the European Investment Bank (EIB) in comparison with those of other multilateral lending institutions (MLIs). ¹ Compared to other MLIs, rather little has been written on the EIB, the European Union (EU)'s long-standing MLI, though it is the world's major MLI in terms of lending activity. ² Until recently the EIB was criticized for its weak accountability standards, though it now seems to be engaged in reform so as to improve its practices on this account. After a brief presentation of the EIB, its mandate and institutional design, we analyse and appraise its substantive and procedural accountability principles and practices. Our appraisal specifically takes into account the fact that the EIB forms part of the EU legal order and the opportunities this may offer to achieve and set best practices with regard to its accountability.