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Financial Intermediaries |
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Financial intermediaries Institutions that provide the market function of matching borrowers and lenders or traders. Financial intermediaries facilitate transactions between those with excess cash in relation to current requirements (suppliers of capital) and those with insufficient cash in relation to current requirements (users of capital) for mutual benefit. Financial Intermediary A financial institution that stands between counterparties in a transaction. For example, in the sale of a house, a bank usually serves as a financial intermediary by providing a mortgage to the homebuyer. In some non-traditional transactions, a bank may buy a product, such as corn, and immediately re-sell it for a profit to a third party. Most transactions requiring a loan to one of the parties include financial intermediaries. See also: Murabaha. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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