Editing Financial intermediary (section)

{{Short description|Financial institution that connects surplus and deficit agents}}
{{Financial market participants}}

A '''financial intermediary''' is an institution or individual that serves as a "[[Intermediary|middleman]]" among diverse parties in order to facilitate financial transactions. Common types include [[commercial banks]], [[investment banks]], [[stockbrokers]], insurance and pension funds, pooled investment funds, leasing companies,  and stock exchanges.

The financial intermediary thus facilitates the indirect channeling of [[funding|funds]] between, generically, lenders and borrowers.<ref name="Financial Stability">{{cite book
  | title = Global Shadow Banking Monitoring Report 2013
  | publisher = Financial Stability Board
  | year = 2013
  | page = 12
  | url = http://www.financialstabilityboard.org/publications/r_131114.pdf 
  | isbn = 978-0-07-087158-8}}</ref> 
That is, savers (lenders) give funds to an intermediary institution (such as a [[bank]]), and that institution gives those funds to spenders (borrowers). 
When the money is lent directly - via the [[financial market]]s - eliminating the financial intermediary, this is known as financial [[disintermediation]].