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The Functions Of Financial Intermediation - A Survey

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  • Andries Marius Alin

    (Al. I. Cuza University of Iasi)

Abstract

Traditional theories of intermediation are based on transaction costs and asymmetric information. In recent decades although transaction costs and asymmetric information have declined, intermediation has increased. New markets for financial futures and options are mainly markets for intermediaries rather than individuals or firms. In this paper we survey the last theoretical and empirical research on financial intermediation and functions of financial intermediation. We discuss the functions of intermediation in this new context.

Suggested Citation

  • Andries Marius Alin, 2009. "The Functions Of Financial Intermediation - A Survey," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 1(9), pages 53-59, May.
    • Handle: RePEc:ovi:oviste:v:1:y:2009:i:9:p:53-59
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    References listed on IDEAS

    as
    1. Leland, Hayne E & Pyle, David H, 1977. "Informational Asymmetries, Financial Structure, and Financial Intermediation," Journal of Finance, American Finance Association, vol. 32(2), pages 371-387, May.
    2. Scholtens, Bert & van Wensveen, Dick, 2000. "A critique on the theory of financial intermediation," Journal of Banking & Finance, Elsevier, vol. 24(8), pages 1243-1251, August.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Boyd, John H. & Prescott, Edward C., 1986. "Financial intermediary-coalitions," Journal of Economic Theory, Elsevier, vol. 38(2), pages 211-232, April.
    5. Douglas W. Diamond, 1984. "Financial Intermediation and Delegated Monitoring," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(3), pages 393-414.
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    More about this item

    Keywords

    financial intermediation; asymmetric information; survey;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General

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