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financial intermediary

Line breaks: fi¦nan|cial inter|medi¦ary

Definition of financial intermediary in English:

noun

An institution, such as a bank, building society, or unit-trust company, that holds funds from lenders in order to make loans to borrowers.
Example sentences
  • To do this, it enters into a forward contract with a financial intermediary (usually a commercial bank) which now assumes the foreign exchange risk for a commission.
  • This refusal will make their notes less liquid and therefore discourage financial intermediaries from making these loans in the first place.
  • In a natural system of money production, banks would grant credit only as financial intermediaries.

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