Financial management, why do you need financial intermediaries?

On the surface, the core of financial intermediation is three mismatches. The first is the mismatch of funds. Your money is too small, it is difficult to find a suitable borrower, and you need an intermediary to collect and concentrate on lending. The second is the mismatch of abilities. You have a job, you are busy, and you have no time to get a loan. But the intermediary has been doing this all his life, better than you. The third is the mismatch of information. Even if you are rich and capable, you can't find the project you want in a limited social circle, and you need someone to help you match it.

Therefore, the emergence of financial intermediaries is based on many reasons, but it is precisely because of this financial intermediary that the inclusiveness of investment and financial management has gradually increased, and the industry and the people have promoted each other.

Financial intermediary refers to the person or institution that acts as a medium or bridge between the supply and demand of funds in the process of financing in the financial market. John Gurley and Edward Shaw divided financial intermediaries into two categories: monetary system and non-monetary intermediaries.

As an intermediary mechanism, the monetary system buys primary securities and creates money; Non-monetary intermediaries only play an intermediary role, buying primary securities and creating monetary claims against themselves in the form of savings deposits, stocks, common stocks and other bonds.

Financial intermediaries are generally composed of bank financial intermediaries and non-bank financial intermediaries, including commercial banks, securities companies, insurance companies and information consulting services. Finance is the core of modern economy.

In modern market economy, financial activities are closely related to economic operation. The scope and quality of financial activities directly affect the performance of economic activities. Almost all financial activities are centered on financial intermediaries, so financial intermediaries occupy a very important position in economic activities. With the deepening of economic financialization and the rapid advancement of economic globalization, financial intermediary itself has become a very complex system, and the operation of this system plays an extremely important role in the healthy development of economy and society.