intermediation


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Related to intermediation: Financial intermediation

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 ?
Securitization-based credit intermediation potentially increases the efficiency of credit intermediation.
As part of the key focus area of this study, this research investigates whether bank charges, based on customers' perceptions, are either an opportunity or threat to their intermediation role in the context of the South African economy.
We interpret a reduction in intermediation costs as an improvement in the financial intermediation technology or a reduction in taxes on financial transactions.
The essence of knowledge management can only be seen within the context of the knowledge complexity continuum (explicit to tacit) and the level of intermediation, externalization, and internalization or cognition that is needed in an organization.
All told, predicting either the share of depository intermediation in overall credit flows or the share of money in the public's overall demand for financial assets is currently more difficult than usual.
Two measures of financial intermediation were used, M2/GDP and Quasi-money/M2.
In this sense, ABCP issuers (conduits) perform typical financial intermediation functions, but they are not banks.
Although some economists, such as Lucas [1988] argue that financial factors are "over-stressed," there is a growing literature that theoretically cultivates the channels through which financial intermediation can influence economic fluctuations and long-run growth.
00), currency of the United States of America to Banco La Hipotecaria of the Republic of Panama, in order to finance or carry out transactions that fall within the programs of financial intermediation of CABEI for which the borrower is eligible.
We are currently working on expanding our credit intermediation capabilities and developing additional products for the affordable multifamily finance industry.
Focus Areas:Financial Intermediation and Development Finance
IXIS"), Centerbrook will be a provider of credit intermediation products, including credit default swaps, to the affordable housing finance industry.