financial intermediary definition
A financial intermediary is typically an institution that facilitates the channeling of funds between lenders and borrowers indirectly.That is, savers (lenders) give funds to an intermediary institution (such as a bank), and that institution gives those funds to spenders (borrowers).This may be in the form of loans or mortgages. Alternatively, they may lend the money directly via the financial markets, which is known as financial disintermediation.unctions performed by financial intermediaries [edit]. The hypothesis of financial intermediaries adopted by mainstream economics offers the following three major functions they are meant to perform: