Banks act as economic intermediaries due to the fact they stand among savers and debtors. Savers area deposits with banks, and then acquire interest bills and withdraw cash. Borrowers obtain loans from banks and pay off the loans with interest.
Commercial banks act as economic intermediaries because they receive the financial savings deposits of customers, and then lend out these funds to debtors. This pastime is referred to as economic intermediation or oblique finance.
A financial middleman is an entity that acts because the intermediary among two parties in a financial transaction, consisting of a commercial bank, funding bank, mutual fund, or pension fund.
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