JOURNAL ARTICLE
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On the Foundations of Financial Intermediation: A Review of the Literature
Credit and Capital Markets – Kredit und Kapital, Vol. 26 (1993), Iss. 1 : pp. 112–141
2 Citations (CrossRef)
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Lambertus J. R. Scholtens, Amsterdam
Cited By
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The Stability of Islamic Finance
Bibliography
2010
https://doi.org/10.1002/9781118390450.biblio [Citations: 0] -
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]
References
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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.