What Is a Financial Intermediary?

A financial intermediary refers to a person or institution that acts as an intermediary or a bridge between the supply and demand of funds during the passage of capital in the financial market. John G. Gurry and Edward S. Shaw divided financial intermediaries into two main categories: monetary systems and non-monetary intermediaries.

Financial intermediary

Financial intermediaries generally consist of bank financial intermediaries and non-bank financial intermediaries, including
John G. Gurry and Edward S. Shaw believe
1.Financial intermediaries have realized the efficient integration and matching of capital flows and logistics, and information flows
As we all know, the birth of industrial technology has brought about the expansion of production scale and the improvement of production capacity, which requires products to break through a narrow geographical range, obtain a wider market space, and the transportation industry emerges at the historic moment. Enlarge the scope of logistics and improve efficiency.
Humans are building railways and shipping lanes.
1. The particularity of management
Business Object: Special CommoditiesMonetary Funds
Business content: currency collection and payment, lending and related financial activities
2. Particularity of economic relations
Financial intermediary
Business Principles: Keep Your Credit
3. Specific characteristics of the industry
Financial intermediaries bear greater risks: concentration of risks
Significantly public: wide range of impact

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