Editing Financial intermediary (section)

== Types of financial intermediaries ==
According to the dominant economic view of monetary operations,<ref name=boe>"The currently dominant intermediation of [[loanable funds]] (ILF) model views banks as [[barter]] institutions that intermediate deposits of pre-existing, real, [[loanable funds]] between depositors and borrowers. The problem with this view is that, in the real world, there are no pre-existing loanable funds; and ILF-type institutions do not exist. Instead, banks create new funds in the act of lending, through matching loan and deposit entries, both in the name of the same customer, on their [[balance sheet]]s. The financing-through-money-creation (FMC) model reflects this, and therefore views banks as fundamentally '''monetary institutions'''. The FMC model also recognises that, in the real world, there is no [[Money creation#Money multiplier|deposit multiplier]] mechanism." From [http://www.bankofengland.co.uk/research/Documents/workingpapers/2015/wp529.pdf "Banks are not intermediaries of loanable funds — and why this matters"], by [http://michaelkumhof.weebly.com/vitae.html Zoltan Jakab] and [[Michael Kumhof]], [[Bank of England]] Working Paper No 529, May 2015</ref> the following institutions are or can act as financial intermediaries:
* [[Bank]]s
* [[Mutual savings bank]]s
* [[Savings bank]]s
* [[Building society|Building societies]]
* [[Credit union]]s
* [[Financial adviser]]s or [[broker]]s
* [[Insurance]] companies
* [[Collective investment scheme]]s
* [[Pension fund]]s
* Cooperative societies
* Stock exchanges

[[File:Bank of England Mc Leavy et al. (2014) Banks Money Creation Balance Sheets (failed in consistent description).png|thumbnail|right|Money Creation [[Balance Sheet]]s (stylized) by commercial banks (see [[Bank of England]] 2014).]]
According to the alternative view of monetary and banking operations, banks are  not intermediaries but "fundamentally [[money creation]]" institutions,<ref name=boe/> while the other  institutions in the category of supposed "intermediaries" are simply [[investment fund]]s.<ref name=boe/>