Should the European investment bank be accountable to financial supervisors?

<h4><b><u>Key Points</u></b></h4><p dir="ltr">• The European Investment Bank (EIB) is not subject to European Union (EU) banking rules or external financial supervision.</p><p dir="ltr">• The EIB’s Best Banking Principles (BBP) selectively apply the EU’s prudential banking requirements, leaving the Bank with a self-selected set of stability indicators.</p><p dir="ltr">• The European Parliament and some EU member states have argued that the Bank should be externally supervised by an EU public entity.</p><p dir="ltr">• External supervision is legally difficult, and the Bank’s conservative lending practices mean that it is financially robust.</p><p dir="ltr">• Financial supervisors should support the EIB’s Board of Directors without compromising the Bank’s autonomy.</p>