0
Making long term loans from short term deposits. This makes banks vulnerable.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What problems would arise without financial intermediation?
The amount to loan Duration or maturity of loan Attitudes toward risk
What is one good example of maturity intermediation?
Borrowing funds at short term and lending the funds obtained at longer term.
What has the author Michel de Lange written?
Michel de Lange has written: 'Essays on the theory of financial intermediation' -- subject(s): Credit, Deposit insurance, Intermediation (Finance)
What has the author Stuart I Greenbaum written?
Stuart I. Greenbaum has written: 'Contemporary financial intermediation' -- subject(s): Bank management, Banks and banking, Financial services industry, Intermediation (Finance)
How does the possibilty of financial intermediation increase the efficiency of the financial system?
Financial intermediation is a way of indirect finance. Some lenders prefer lend indirectly via financial intermediaries by using financial instruments. Indirect finance is as important as direct finance for the financial system to survive. Thus, financial intermediation is an asset for an efficient financial system.
Distinguish between financial intermediation and financial facilitation?
Financial intermediation is channeling funds from lenders to borrowers, sort of like a middle-man in the process. Financial facilitation can be either the act of preserving a market's liquidity or the act of supplying a market for a security.
What has the author J H Miller written?
J H. Miller has written: 'Macro-modelling with financial intermediation'
What is convenience denomination as a role of finanacial intermediation?
Matching small deposits with large loans and large deposits with small loans
How do you improve maturity?
You can improve maturity by intelligence. Age also affects maturity of person.
When Maturity GAP is positive?
Maturity of asset in portfolio is larger than the maturity of liabilities in the portfolio
What are the four types of maturity?
The four types of Maturity are: infant, child, adolescent, and adult maturity
What is maturity index of a crop?
maturity index of a crop
