intermediation

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Related to intermediate: Intermediate value theorem, Intermediate filaments

Intermediation

Investment through a financial institution. Related: Disintermediation.

Intermediation

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.

intermediation

The flow of funds through financial intermediaries (such as banks and thrifts) on its way to borrowers. Money deposited at financial institutions that make the money available to corporate borrowers is an example of intermediation. This process tends to facilitate saving and investing in sophisticated financial systems. Compare disintermediation.

intermediation

the role of financial institutions such as COMMERCIAL BANKS and BUILDING SOCIETIES as intermediaries in channelling funds from lenders to borrowers.

intermediation

the role of the financial institutions in channelling SAVINGS and other deposits by LENDERS to BORROWERS. Financial intermediaries such as COMMERCIAL BANKS and BUILDING SOCIETIES accept deposits from individuals and businesses and use these funds to make LOANS to creditworthy customers. An intermediary's profit is the difference between INTEREST RATES paid for deposits and interest rates on loans. See FINANCIAL SYSTEM, DISINTERMEDIATION.

intermediation

The normal flow of money into financial institutions in the form of deposits,which are then loaned out to earn income.Contrast with disintermediation,which occurs when depositors take their money out of financial institutions because they can earn more money,relatively risk free, in other investments.

References in periodicals archive ?
Intermediate Demand: The intermediate demand portion of the FD-ID system tracks price change for goods, services, and construction products sold to businesses as inputs to production, excluding capital investment.
He's eligible because he wasn't involved with the seniors last year and is currently back-up with the seniors but if he takes to the field on Sunday he will be immediately ineligible for intermediate.
The survey asked parents to rate school construction or repair needs in three priority categories: highest, intermediate or lowest.
The transcriptions are simple to learn and teach and charming to play, and they range from easy to intermediate.
Concerns include Fitch's expectations for weak pro forma metrics over the intermediate term, event risk related to the company's on-going disputes with content provider Grupo Televisa S.
2) Placerita Junior High student Olivia Tenney signs the box used to ship her school's flag to Steinway Intermediate School in New York, where it will fly for a day and then be shipped back.
The financed entity is considered to know this, for example, if its liability to the intermediate entity has been guaranteed by the financing entity.
The editors clarify the principles on which the development of affordable housing and intermediate tenures has been based; analyse the policy instruments used to implement these ideas; and make a preliminary assessment of their longer term value to households and governments alike.
1) with respect to the Intelsat Jackson Notes, the Intermediate Holdco Notes and the Intelsat Sub Holdco Notes validly tendered and not validly withdrawn at or prior to the Intelsat Jackson Consent Time, the Intermediate Holdco Consent Time and the Intelsat Sub Holdco Consent Time, respectively, promptly after such acceptance for purchase (which is currently expected to be in each case, April 4, 2011, unless the Intelsat Jackson Consent Time, the Intermediate Holdco Consent Time or the Intelsat Sub Holdco Consent Time, as applicable, is extended), and
The statutory language is very broad, but the legislative history described the particular situations intended to be addressed solely in terms of international transactions, primarily loans where an intermediate entity is inserted between the lender and the borrower for treaty-shopping purposes.
During the meeting future plans to develop intermediate schools in the light of implementation of the Schools Performance Improvement Scheme to comprise 30 intermediate schools next year aimed at upgrading the output of schools and develop schools performance to obtain at least a "GOOD" rating during QAAT auditing.
French School student Youssef Ramadan finished third overall in 12 minutes, 32 seconds, a time that also made him quickest in the intermediate boys category.

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