Intro. To Financial Management

The Principle Role ofFinancial IntermediariesThere atomic number 18 evidences that fiscal intermediaries play a key determination in improving the performance of the deliverance (Morawski 4 ) Not to mention that they could even act as a good predictor of long run judge of economic growth , capital accumulation and productivity melioration (King and Levine cited in Chakraborty 1 . However , what -exactly- is the principle role of fiscal intermediaries ? This is what this essay tries to answerThis essay aims at discussing the principle role of financial intermediaries (banks , investment companies , financial advisors or br brokers , credit unions , unwashed funds , and insurance companies . The best approach to achieve this inclination is to search the literature to study what is written concerning financial intermediaries incompatible roles and assess these roles to come up with the principle role of these institutionsHowever , first of all , it was necessary to study different definitions for financial intermediaries in case these definitions could give an idea about the principle role of them .

For example , -according to Claus et al . - financial intermediaries `channel funds from those who have a bun in the oven savings to those who have more `productive uses for them (2 . Also Jalan define financial intermediaries as institutions which `transfer funds from economic actor with surplus funds (surplus units ) to economic agents (deficit units ) that would like to utilize those fundsThen , Morawski tolerated a better definition to `Financial intermediaries term as institutions which provide `channeling or efficiently `transfer funds between lenders (surplus units ) and (deficit units ) borrowers that are brought...If you want to get a full essay, order it on our website: Ordercustompaper.com

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