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On the Foundations of Financial Intermediation: A Review of the Literature

Year:    1993

Author:    Scholtens, Lambertus J. R.

Credit and Capital Markets – Kredit und Kapital, Vol. 26 (1993), Iss. 1 : pp. 112–141

Abstract

In this paper, the literature on the role of the financial intermediary within the economy is reviewed and structured. The financial intermediary transforms financial assets and claims as to maturity, risk, scale, and place. Market imperfections are responsible for the emergence of the financial intermediary: cost, asymmetric information, and regulätion structures give rise to specialisation in financial intermediation. In specialising, the intermediaries aim at mitigating the effect of market imperfections. They cannot succeed completely: the everchanging environment is accompanied by changing imperfections and thus provides a continuous rationale for the existence and emergence of financial intermediaries.

Journal Article Details

Publisher Name:    Global Science Press

Language:    Multiple languages

DOI:    https://doi.org/10.3790/ccm.26.1.112

Credit and Capital Markets – Kredit und Kapital, Vol. 26 (1993), Iss. 1 : pp. 112–141

Published online:    1993-01

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    30

Author Details

Scholtens, Lambertus J. R.

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    Bibliography

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    https://doi.org/10.1002/9781118390450.biblio [Citations: 0]
  2. Banken, Erfolg und Finanzierung

    Unternehmenskontrolle und Finanzintermediation im Rahmen der ökonomischen Theorie

    Seger, Frank

    1997

    https://doi.org/10.1007/978-3-322-91489-7_3 [Citations: 0]

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