Intermediaries: Non- or for-profit institutions that have specialized lending capacities. They obtain capital in the form of equity and low interest loans from a variety of sources, including foundations and other funders, to form a 'lending pool.' They then serve as 'wholesalers' who process large numbers of small loans or investments. This 'economy of scale' often allows intermediaries to be more efficient than a foundation or funder could be if it considered each investment individually. Also, intermediaries often develop expertise in a particular field or region that foundations or funders cannot afford to develop. In the context of this study, non-financial intermediaries include community foundations and financial intermediaries include credit unions, venture capital and loan funds, banks, etc.

 

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Intermediaries: Non- or for-profit institutions that have specialized lending capacities. They obtain capital in the form of equity and low interest loans from a variety of sources, including foundations an . . . View Full Definition

Financial Intermediaries: A financial institution that accepts deposits and makes loans.

Disintermediation: The process of individuals investing their funds directly instead of placing their savings with banks, savings and loan associations and similar institutions for investment by such instituti . . . View Full Definition

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