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Related to intermediary: Qualified intermediary



A situation in which a financial institution 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 buyer to pay the seller. In some non-traditional transactions, a bank may buy a product (e.g. corn) and immediately re-sell it for a profit to a third party. Most transactions requiring a loan to one of the parties include intermediation. See also: Murabaha.


References in periodicals archive ?
Whether the financial intermediary satisfies a treaty limitation-on-benefits provision.
In H1 2011, Industrial and Commercial Bank of China (ICBC) continued to stand first for its intermediary business revenue of RMB 53.
The intermediary business is responsible for the majority of Santander's annual mortgage sales in the UK.
The new intermediary division will be responsible for the co-ordinated management of the two businesses, Santander said, adding that there were no further decisions on any further integration between the two operations currently, with both continuing to operate as independent companies and brands.
As in the example above, they sold their purple duplex on December 20, 2005, for $100,000, and on March 1, 2006, bought New Property for $90,000, using all of the intermediary money and getting a loan for the balance of $30,000.
Under one form of parking arrangement (see Exhibit 1), the intermediary acquires title to the replacement property (perhaps financed by a nonrecourse loan from the taxpayer) and parks it until the taxpayer can arrange a sale of the relinquished property.
Alan Mathewson, Managing Director, Intermediary Distribution and Santander Private Banking (UK), said: "Consolidating our intermediary mortgage business through the Abbey brand will enable us to align our product offering and increase efficiency.
Tax Withholding, should be used by a foreign intermediary recipient of income who is not the income's beneficial owner.
However, the regulations generally do not apply when the ultimate financing entity funds the intermediary through an equity investment, except when its legal right to payments from the intermediary is similar to the rights of a creditor.
The severe downturn in gross mortgage lending over the last two years has had profound consequences for the intermediary sector.
To pay for the purchase of your new property you get a mortgage for $100,000 which means that you only need $50,000 of the $60,000 the intermediary is holding.
The intermediary sold the taxpayer's property and purchased land identified by the taxpayer.