financial intermediary
Quick Summary
A financial intermediary is an institution that channels funds from savers to users. Essentially, they act as a "go-between".12
Banks are a primary example of financial intermediaries. They collect money from individuals and businesses with excess funds and use it to provide loans and financing to others. This process connects those who have capital with those who need it.3
There are different types of financial intermediaries, including commercial banks, which handle savings and loans for individuals and businesses, and investment banks, which help corporations and governments raise money through stocks and bonds. Other examples include credit unions, insurance companies, and pension funds.31
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