Intermediaries

Content

I. Introduction to Financial Intermediaries

II. Types of Financial Intermediaries
III. Benefits of intermediaries
IV. The roles of financial intermediaries
V. Functions of Financial Intermediaries
VI. The Impact of Financial Intermediaries on Resource and
Economy
VII. Financial intermediaries in the Philippines
Introduction to Financial Intermediaries
What is a financial Intermediary?
• Financial intermediaries provide a middle ground between two parties
in any financial transaction. A prime example would be a bank, which
serves many different roles: it acts as a middleman between a borrower
and a lender, and pools together funds for investment.
How a Financial Intermediaries works?
• Financial intermediaries move funds from parties with excess capital to
parties needing funds. The process creates efficient markets and lowers
the cost of conducting business. For example, a financial advisor
connects with clients through purchasing insurance, stocks, bonds, real
estate, and other assets

Introduction to Financial Intermediaries

Types of Financial Intermediaries

 Banks
 Credit Unions
 Pension Funds
 Insurance Companies
 Stock Exchanges

Types of Financial Intermediaries

Benefits of intermediaries
Advantage: Disadvantage:
• Low Risk • Low returns on investment
• Convenience • Opposite Goals
• Economies of Scale • Fees and Commissions
• Financial Specialization • False Opportunities
• Greater Liquidity • High Interest on Loans
• Safe Investments

Benefits of intermediaries
The roles of financial intermediaries
 Asset Storage
 Loans
 Investment
 Advisory
 Management
Functions of financial intermediaries
 Convert savings into investments
 Provide cash facilities
 Providing loans
 Assists clients to grow their investments
 Help create efficient markets and lower the cost of doing business

The roles and functions of financial intermediaries

The Impact of Financial Intermediaries on Resource and
Economy
• The impact of financial intermediaries is to decrease the
transaction costs of capital accumulation and encourage savings.
Financial intermediaries are also essential in increasing total factor
productivity by directing investments to the most productive
projects and monitoring them in a cost-efficient way. In an
economy the financial intermediaries has been involved and the
impact of it is to be able to have a liquidity insurance and therefore
is able to devote more of its savings to higher return illiquid
assets.

Impact of Financial Intermediaries on Resource and Economy

Financial intermediaries in the Philippines
Banks:
• Robinsons Bank Corporation
• Asia United Bank
Insurance Companies:
• Pru Life UK
• Insular Life
Stock Exchange:
• Ayala Corporation
• SM Investments Corporation
Financial intermediaries in the Philippines
Conclusion
• Therefore I conclude that the Financial Intermediaries is
important in the Capital Market because it is a bridge for
the financial transactions to facilitate well. There will be no
savers or borrowers without the financial intermediaries
and it has a big impact in our country. And also Financial
intermediaries have a central role to play in our economy
where help us to create efficient markets and lower the cost
of doing a business.

conclusion
Thank you po!♥
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