Financial Intermediation: Industry Sectors, Products and Markets
Brian Scott‐Quinn
Abstract
Brian Scott‐Quinn
Abstract
An intermediary stands between the two sides in a transaction and thus creates an indirect relationship between them. In order to survive and prosper, intermediaries need to provide some service that is of sufficient value that those on either side are willing to pay for it. But before we can understand intermediation or disintermediation we need to understand the two basic types of intermediaries that we introduced in the previous chapter.
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An intermediary stands between the two sides in a transaction and thus creates an indirect relationship between them. In order to survive and prosper, intermediaries need to provide some service that is of sufficient value that those on either side are willing to pay for it. But before we can understand intermediation or disintermediation we need to understand the two basic types of intermediaries that we introduced in the previous chapter.
Key concepts: Disintermediation, Intermediary, Intermediation, Financial intermediary, Business, Database transaction, Order (exchange), Transaction cost