FINANCIAL INTERMEDIARIES
, Introduction
Financial intermediaries are institutions which operate in the financ
market by channeling saving from lenders to the borrowers who wish
invest or they are institutions that help to connect the surplus spendi
units (lenders) to deficit spending unit (borrowers). They accept depos
from customers and loans to investors.
There are two intermediaries:
Banking financial intermediates.
These are institutions that receive deposits from the public, give loa
mainly on short term basis and create new deposits (more money)
lending the amount of funds deposited by customers to other custome
Commercial banks are examples of banking financial intermediaries.
, Introduction
Financial intermediaries are institutions which operate in the financ
market by channeling saving from lenders to the borrowers who wish
invest or they are institutions that help to connect the surplus spendi
units (lenders) to deficit spending unit (borrowers). They accept depos
from customers and loans to investors.
There are two intermediaries:
Banking financial intermediates.
These are institutions that receive deposits from the public, give loa
mainly on short term basis and create new deposits (more money)
lending the amount of funds deposited by customers to other custome
Commercial banks are examples of banking financial intermediaries.
