The majority of financial intermediaries buy directly related financial claims and produce indirectly related securities.
Banks: Commercial and central banks serve as financial intermediaries by broadly facilitating borrowing and lending. The cooperative activities of credit unions and building societies are governed by the same rules.
Usually acting as middlemen between banks or funds, financial intermediaries operate as a middleman in financial transactions. These middlemen assist in establishing competitive markets and reducing transaction costs. The public's deposits are not accepted by intermediaries, who can also offer leasing and factoring services.
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