financial intermediary

financial intermediary definition - business

financial intermediary

A financial institution such as a commercial bank or thrift that facilitates the flow of funds from savers to borrowers. Financial intermediaries profit from the spread between the amount they pay for the funds and the rate they charge for the funds. Also called intermediary. See also intermediation.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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