process of transferring funds from an ultimate source to the ultimate user. A financial institution, such as a bank, intermediates credit when it obtains money from a depositor and relends it to a borrowing customer. The opposite is disintermediation, the withdrawal of deposit funds when savers expect to earn a higher yield through direct investment such as stocks or bonds.
placement of money with a financial intermediary like a broker or bank, which invests it in bonds, stocks, mortgages, or other loans, money market securities, or government obligations. The opposite is disintermediation, withdrawal of money from an intermediary.
placement of money with a financial intermediary like a broker or bank, which invests it in bonds, stocks, mortgages, or other loans, money-market securities, or government obligations so as to achieve a targeted return. More formally called financial intermediation. The opposite is disintermediation, the withdrawal of money from an intermediary.
the normal flow of funds into financial intermediaries such as S&Ls, which lend out the money.Contrast disintermediation.
Example: See Figure 48, "Normal situation."
