Title - Chapter: Types of Financial Intermediaries
TL;DR - Financial intermediaries occupy different niches and can be broken down into groups with others sharing similar qualities.
Helpfulness - 4
Tags - financial intermediaries, banks, insurance, liabilities, balance sheet
- What are financial intermediaries?
- What is the role of different financial intermediaries?
- Primary financial intermediaries draw funds from and make funds available to households, businesses, or government.
- Secondary financial intermediaries rely on primary financial intermediaries for most of their funds.
- The liabilities of the banking system are generally realizable at any time without delay.
- Financial intermediaries under the umbrella of “insurance companies” offer protection against risks in return for definite payments by/for the insured.
- Long-term nature; slower rate of turnover
Follow up links:
- Financial Intermediaries in the American Economy Since 1900, https://www.nber.org/books/gold58-1