Financial intermediary

A financial intermediary is an institution or individual that serves as a middleman between two or more parties, typically a lender and borrower, in order to facilitate financial transactions. Common types include commercial banks, investment banks, stockbrokers, insurance and pension funds, pooled investment funds, leasing companies, and stock exchanges.

When the money is lent directly via the financial markets, eliminating the financial intermediary, the converse process of financial disintermediation occurs.

This article is issued from Wikipedia. The text is available under Creative Commons Attribution-Share Alike 4.0 unless otherwise noted. Additional terms may apply for the media files.