disintermediation investment & finance definition
Listen
The removal of a middleman from a transaction.
Definition
Disintermediation
The movement of funds from one investment vehicle to another; for example the withdrawal of funds from depository institutions for the purpose of investing the same funds in money market instruments.
Disintermediation Term used originally to describes the process whereby customers did not include the often-used intermediary, the bank to complete a transaction.
Disintermediation
The movement of funds from low-yielding accounts like savings accounts into higher yielding investments like debt securities.
Back to Top ...
Disintermediation: The placement of funds directly into securities rather than into a bank or thrift (which acts as an intermediary).
Disintermediation
Withdrawal of funds from a financial institution in order to invest them directly.
Disintermediation: The nonuse of financial institutions as intermediaries between savers and the users of funds.
Intermediation
Investment through a financial institution. Related: disintermediation.
Internal auditor
An employee of a company who analyzes the company's accounting records to that the company is following and complying with all regulations.
Disintermediation
The withdrawal of money from low yielding financial accounts, such as saving accounts, and the reinvestment into higher yielding securities such as Treasury bills.
disintermediation The extraction of an intermediary, or middleman, from a transaction or communication.... disinvestment A decrease in capital investment. dismal science This is a nickname for the field of economics.
Good news: This is a logical next step in disintermediation. The cash flows are relatively predictable, in contrast to cash flows on "catastrophe bonds" (q.v.).
One feature of this development is disintermediation. A portion of the funds involved in saving and financing, flows directly to the financial markets instead of being routed via the traditional bank lending and deposit operations.
Direct conclusion of a securities transaction between two parties without the intermediation of a stock exchange.
own-account or third-party trading, third-party asset management, and intermediation on primary markets. Former "Sociétés de Bourse" or Bourse member firms qualify as investment companies.
As financial intermediation grew in complexity and sophistication in the 1980s and 1990s, it became more so. As a result, some central banks, including the U.S.
" The housing sector is still languishing, he continued, "credit intermediation is uneven, infrastructure investment is lagging, job skill mismatches are increasing, and income and wealth inequalities are worsening." ...
 See also: Investment, Market, Issue, Stock, Interest Rate
|
