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.

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The results lend support to the view that in the early stages of development, financial intermediation plays a supply-leading role and induces some measure of economic growth in the sample of SSA countries surveyed.

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This is the so-called shadow banking model of financial intermediation, as described, for instance, in Pozsar et al.

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Although these studies have made important contributions in documenting the link between financial intermediation and real economic activity, they are subject to two major shortcomings.

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The global financial intermediation system is a system that stores, transfers and invests between lenders and borrowers.

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They cover logistics service providers, intermediation, and networks; service providers, intermediation, and information technologies; intermediaries' capacities and performance; and international value chains and service intermediaries.

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The large amounts of credit intermediation provided by the shadow banking system contributed to asset price appreciation in residential and commercial real estate markets prior to the financial crisis and to the expansion of credit more generally.

Shadow banking

According to Gurley and Shaw (1960) and Hestre (1969), financial intermediation is a process where financial transactions between borrowers and savers take place through the banking system.

Are bank charges a threat or opportunity to banks' intermediation function? The case of South Africa

As Hahn (1971) pointed out, financial intermediation is not a costless activity: It uses real resources, such as labor and capital, and governments often tax such activity.

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This paper's intention is to spur discussion about the roles of "workforce intermediation" as it relates to youth development and employability.

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