disintermediation

(redirected from Reintermediation)
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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.

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for a survey of the literature on disintermediation and reintermediation in electronic commerce.
Reintermediation 7 4 6 7 -- -- Web-Enabler 6 89 5 47 8 76 Disintermediation 4 44 4 22 6 45 Securities Brokerage # of Rank * Cos.
According to Grimes, the reason for departing from monetarist orthodoxy was that reintermediation following financial deregulation cased large changes in the monetary aggregates.
The PBC expected that the reintermediation of funds would ease the shortage of working capital and increase the excess reserves held by the specialized banks.
Smith, "Recent Innovations in Interest Rate Risk Management and the Reintermediation of Commercial Banking," Financial Management (Winter 1988), pp.
The higher targets mainly reflected uncertainties concerning the effects of financial innovation and the expected reintermediation of financial flows following the lifting of the ceilings for bank credit expansion and the impact of the planned liberalisation of foreign exchange restrictions (Diagram 5).
ChipSolutions achieved exceptional reintermediation adaptation.
Disintermediation, the practice of bypassing traditional distribution channels or cutting out the middle man, has taken such a hold that it's caused its opposite, reintermediation, to rise.
Rafaeli urged researchers to move away from commonly researched subjects such as disintermediation, reintermediation (now on the rise), the digital divide (an overdone topic, in his opinion), technological determinism, content as king, the Internet stock bubble, individual effects (such as addiction, alienation, or loneliness), online journalism, push vs.
replacing the existing supply chain with novel forms of reintermediation.
Rather, they will drive a process of reintermediation, driven by evolving customer needs.
Reintermediation means applying the power of the Web to create new and more effective supply chain relationships.