intermediation
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Related to intermediation: Financial intermediation
Intermediation
Investment through a financial institution. Related: Disintermediation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
intermediation
the role of financial institutions such as COMMERCIAL BANKS and BUILDING SOCIETIES as intermediaries in channelling funds from lenders to borrowers.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.