Supply and demand in financial markets meet directly without banks intervening (the investing of funds that would normally have been placed in a bank or other financial institution, directly into investment instruments issued by the final users of the funds; in other words: investors and borrowers transact business in a straight line and thereby bypass banks or other financial intermediaries). – The crowding out of credit institutions from the financing process makes it more difficult for the central bank to overlook and influence money flows. Causes of disintermediation in this sense are mainly securitization and domestic financing. – Money movements from one type of investment to another (the movement of funds from one investment vehicle to another; for example, the withdrawal of funds from bank account for the purpose of investing the same amount in bonds). – See internal financing, in-house system, securitization.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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