Financial intermediaries are institutions or entities that act as a bridge between borrowers and lenders in the financial system. They help facilitate the flow of money by connecting those who have excess funds (lenders) with those who need funds (borrowers). These intermediaries can include banks, credit unions, mutual funds, insurance companies, and other financial institutions. They provide various services like collecting deposits, granting loans, offering investment options, and managing risks. Overall,
financial intermediaries play a crucial role in making the financial system function smoothly.
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