The importance of financial intermediaries as well as their growth has been reduced in recent years by

Question

Quizplus · Accepted Answer

Industrial loan companies (ILC) and new forms of disintermediation have contributed to reducing the importance and growth of traditional financial intermediaries. ILCs offer banking services without being classified as banks, thus operating under different regulations. Disintermediation refers to consumers directly investing or borrowing from non-traditional sources, bypassing traditional banks and financial intermediaries.

The Importance of Financial Intermediaries as Well as Their Growth