Basic functions of financial intermediary

1. Organizations engaged in financial activities are collectively referred to as financial intermediaries and often referred to as financial institutions. Financial institutions cover a wide range. In indirect financing, there are various types of banks as financial intermediaries that conduct financial transactions with both parties.

2. In the field of direct financing, investment banks and securities companies are business intermediaries that provide planning consultation and economic services for both fundraisers and investors. Securities brokers, various funds in the financial market and stock exchanges coexist with them. Another kind of financial intermediary is that all kinds of insurance companies engage in trust, land financing lease and real estate financial activities, which is also an important link in the financial intermediary system.

3. In the financial field, the word intermediary often refers to the terminator of credit relationship and the end between bands, where to intervene and then bring it out to the borrower, and sometimes it also refers to the current usage of banks. This usage is quite common, but in international organizations and foreign financial theory research, the word financial intermediary is used in the above broad sense.

4. Explain financial intermediation as a whole and adopt a broad interpretation. In addition, due to habits and other reasons. What an intermediary might mean. The intermediary agencies mentioned in our daily life often refer to accounting firms, credit evaluation firms and other intermediary service agencies.

In order to meet the requirements of highly developed market economy, western countries have established a large-scale financial intermediary system, and there are many kinds of financial intermediaries. It can be roughly summarized as a number of banks. The pattern of coexistence with non-bank financial institutions. Among them, the residence of banking institutions is dominant.

6. The specific settings of banking institutions in western countries are different, which can be roughly divided into two parts: central bank and deposit currency bank.

7. Some deposit banks that are not bankers but have similar business nature should also be classified as deposit banks. As for non-bank financial institutions, it has become a very complicated composition of other financial institutions. It should be noted that some non-bank financial institutions can also be named after banks.

8. The central bank and the deposit currency bank have separate tables. Here are only some other important links briefly introduced.

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