disintermediation

(redirected from Direct from the factory)
Also found in: Dictionary, Encyclopedia, Wikipedia.

Disintermediation

Withdrawal of funds from a financial_institution in order to invest them directly.

Disintermediation

The act of making a withdrawal from a bank or other financial institution in order to use the funds for investment purposes. For example, one may withdraw $10,000 from his savings account in order to buy a stock without the bank's intermediation. This has become less common with deregulation of banking because more banks can offer investment services, reducing the incentive to withdraw.

disintermediation

The withdrawal of funds from financial intermediaries such as banks, thrifts, and life insurance companies in order to invest directly with ultimate users. Disintermediation was more of a problem when financial intermediaries were limited in the returns they could pay to savers. Deregulation of financial intermediaries was intended to dampen the periodic swings toward disintermediation. Compare intermediation.

disintermediation

a situation where a FINANCIAL INTERMEDIARY such as a BUILDING SOCIETY is forced to reduce its lending operations because of the withdrawal of deposits from it and because it is unable to attract new funds. Disintermediation usually occurs (and then only temporarily) when an intermediary (see INTERMEDIATION) fails to adjust its borrowing rates on deposits promptly when interest rates rise, so its rates are insufficiently competitive vis-à-vis other deposit-taking institutions.

disintermediation

The situation that exists when depositors withdraw their savings from financial institutions and invest the money directly in the marketplace,usually because they can obtain a higher yield even though also running a higher risk of losing their money.

Mentioned in ?
References in periodicals archive ?
Put them to the test - Rapid will guarantee to beat any like-for-like quote, including competitors' sale prices and direct from the factory deals.
Macca made the British-built Aston his car of choice and ordered the four-litre model direct from the factory.
Under its new business model, Country Coach is attempting to sell its coaches direct from the factory, rather than through a dealer network as it has in the past.
This latest move takes the process a stage further by allowing buyers to configure the car to their precise requirements, pay a deposit, order it direct from the factory, track the car's progress and make a final payment.
And if anyone needed an indication of what can be achieved they could look to Stuttgart where a third of all Mercedes cars are sold direct from the factory.
See how modern classics are created and buy direct from the factory or shop on Poole Quay.
The program is an expansion of the SIGnificant Dealer Program, announced in March, which gives dealers the opportunity to buy Certified Pre-Owned SIG Sauer pistols direct from the factory.
All agricultural tractors and combines will be shipped with the B2 biodiesel fuel to dealers and customers direct from the factory.
Cheap and cheerful alarms for DIY installation usually cost somewhere round pounds 60 to pounds 70 over the counter, or as little as pounds 40 if you're willing to buy direct from the factory in the Far East.
The difference is, I buy it direct from the factory from China, just like Broyhill does, except it doesn't have any brand name on it.
When consumers purchase the items, the orders are shipped direct from the factory to consumer, eliminating several costly processes.

Full browser ?