What are the financial intermediaries?

Financial intermediary refers to the media organization that absorbs funds from the fund suppliers and then raises funds from the fund demanders. In order to realize the intermediary function, financial intermediaries usually issue various subordinated securities, such as certificates of deposit and insurance policies, in exchange for funds. Because there are great differences in subprime securities issued by various financial intermediaries, economists take these differences as the basis for the classification of financial intermediaries. Generally speaking, financial intermediaries that issue subordinated monetary securities, such as passbooks and certificates of deposit, are called deposit money institutions. These subordinated securities issued by deposit money institutions not only account for most of the liabilities of deposit money institutions, but also belong to a part of money supply. As for the subordinated securities issued by non-deposit monetary institutions, such as insurance policies, they account for a large part of the liabilities of non-deposit monetary institutions, and these subordinated securities are not part of the money supply.

According to whether to issue currency, the indirect claim right of financial intermediaries can be divided into:

(1) Deposit monetary institutions: including commercial banks, specialized banks, grassroots cooperative financial intermediaries, central trust bureaus, etc. Among them, specialized banks include small and medium-sized enterprise banks, industrial banks and agricultural banks, and grassroots cooperative financial intermediaries include credit cooperatives and credit departments of agricultural and fishery associations.

(2) Non-deposit financial institutions: including Postal Savings Bank, trust and investment companies and insurance companies.