The action of the CEB (Council of Europe Development Bank) is based on a balance between the requirement to be profitable, so as to ensure its financial independence, and its social vocation.

The CEB is a bank that grants loans and guarantees, not subsidies, to its member states, to local authorities or to financial institutions. Its loans are intended for the implementation of social projects, which thus enjoy the benefit of favourable financial conditions.
Since the Bank receives no annual contributions from its members, its financial activity is based on its paid-up capital and reserves and the resources it raises on the financial markets.
The member states submit projects for the Administrative Council to approve their financing, according to the fields of action defined in Articles of Agreement and Administrative Council Policy for loan and project financing (2006).
To finance these projects, the CEB borrows on the international money markets by means of public issues and private investments. The quality of its financial structure guarantees the quality of its rating and enables it to raise resources on the capital markets on the best possible terms. This in turn enables the Bank's own borrowers to significantly lower the cost of their resources for the financing of social projects.

General conditions for obtaining financing In order to obtain CEB financings, the projects presented must meet the following general criteria:
	Compliance with Council of Europe conventions
	Respect for the environment on the basis of international conventions and compliance with standards of quality
	Participation in the financing of projects may not exceed 50% of the total eligible cost, the balance may be co-financed by other international institutions (for example see partnerships)
	Compliance with bidding procedures in accordance with national and international directives.