An activity performed by banks and other financial institutions, aimed at matching the financial needs of certain companies with the financial surpluses of other companies. Banks can purchase direct claims from deficit units, while issuing secondary claims to depositors. Opposite: disintermediation. Français: Intermediation Español: Intermediación
The process of pooling and supplying funds for investment by financial institutions called intermediaries. The process is dependent on individual savers placing their funds with these institutions and foregoing opportunities to directly invest in the investments selected.
The placement of money with financial intermediaries (banks, thrifts, insurance companies) which in turn invest in stocks, bonds, and/or mortgages. See: Disintermediation.
Investment through a financial institution. Related: disintermediation.
Money deposited with financial intermediaries--such as brokerage firms, banks, insurance companies--which invest in stock, bonds, money market securities, government obligations and/or mortgages to obtain a targeted return. In contrast, disintermediation is the withdrawal of money from an intermediary. See: Disintermediation; Intermediary
The process of bringing savers, investors and borrowers together so that savers and investors can obtain a return on their money and borrowers can use the money to finance their purchases or projects through loans.
The pooling and supplying of funds for investment by intermediaries (financial institutions). The funds are derived from individual savers who deposit their funds and forego the opportunity to directly invest in the selected investments.