Disintermediation refers to the process where financial intermediaries, such as banks or savings and loan associations, are bypassed, and funds are directly invested into other assets to seek higher yields.
Institutional lenders are financial intermediaries that provide loans and other financial products, primarily funding these activities through deposits or customer investments and operating under regulatory guidelines to minimize risk.
Intermediation refers to the process where financial intermediaries, such as banks or savings and loan associations (S&Ls), facilitate the flow of funds between savers and borrowers. This process enables the efficient allocation of resources and supports economic growth by providing a mechanism for savers to earn a return on their funds and borrowers to access the capital they need.
The Shadow Banking System refers to the network of financial intermediaries that operate outside the traditional banking system and its regulatory framework.
