CEB Council of Europe Development Bank (Paris, France)
Strange as it sounds the Council of Europe Development Bank exists to aid in the development of Europe. In this case there is little need for economic development so the main role of the bank is to focus on social development projects. This makes them very different from most other development banks which focus mainly on economic growth.
A lot of people are confused by the idea that there is a Council of Europe Development Bank. Most people think of development banks as being mainly aimed at helping the less developed nations of the world, obviously not an issue for Europe. However there is still an important role for the bank to play and that role is to help with the social development of Europe. In particular the goal is to improve the equality in terms of development of the member nations of the bank. They do this by providing loans to nations that need money to invest in social programs.
The Council of Europe Development Bank was created in the days after the Second World War in order to help displaced refugees. Over the years the role of the bank expanded to that of providing money for disaster relief and ultimately to its current role of helping to improve social conditions throughout Europe. One way in which the bank differs from other development banks is that the money that they lend is only ever given to banks or public entities, it does not loan money to member governments. The bank also only provides loans for social programs like fighting poverty.
A lot of people are confused as to just where the Council of Europe Development Bank gets the money that they lend. Despite the common belief the money does not come from the taxpayers of the member nations. Rather the money comes from the interest that is paid on the loans that it makes. In this respect it is just like any other bank. The initial financing for the bank however did come from the member countries as they contributed money towards the founding of the bank.
Over the years the Council of Europe Development Bank has proven to be one of the most successful development banks out there. Obviously they are helped somewhat by the fact that Europe is much more developed than most of the other regions that have similar banks. Nevertheless the effective management that the bank has had has led to a great deal of the success as well. This is largely down to the fact that they are quite selective in how the lend their money. In particular in that they will only provide financing for part of any project, normally not more than forty percent. The forces the member state to come up with the rest of the money which gives them a stake in making sure that the project is successful.