Terminology Support of Financial Intermediation Theory: Key Terms Development

The aim of the article is to determine the nature of definitions 'financial institution' and 'financial organization' as well as to establish relationships between them in the light of the specific activities of financial intermediaries. Terminological and etymological analysis of terms and definitions 'intermediary', 'financial intermediary', 'financial institution' and 'financial organization' were done. Relationship of financial institutions and financial organizations was proved. We revealed that the concept of 'financial intermediary', 'financial institution' and 'financial organization' is often identified in the economic literature and research papers. We proved that intermediation is essential for financial institutions, but not exclusive activities. A financial institution is regarded as a legal entity providing one or more financial services aimed at the transformation of its own and borrowed funds, both for clients and for their own benefit. Financial institutions were identified as a combination of economic, social, political, ethical and legal standards and requirements that determine the activities of financial institutions.