intermediation

intermediation definition - business

intermediation

The flow of funds through financial intermediaries (such as banks and thrifts) on its way to borrowers. The depositing of money at financial institutions that make the money available to corporate borrowers is an example of intermediation. This process tends to facilitate saving and investing in sophisticated financial systems. Compare disintermediation 1.

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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