disintermediation

(redirected from disintermediations)
Also found in: Financial, Encyclopedia.

dis·in·ter·me·di·a·tion

 (dĭs-ĭn′tər-mē′dē-ā′shən)
n.
1. The elimination of intermediary agents in transactions between buyers and sellers.
2. Withdrawal of funds from intermediary financial institutions, such as banks and savings and loan associations, in order to invest in instruments yielding a higher return.

disintermediation

(dɪsˌɪntəˌmiːdɪˈeɪʃən)
n
(Banking & Finance) finance the elimination of such financial intermediaries as banks and brokers in transactions between principals, often as a result of deregulation and the use of computers

disintermediation

an economic phenomenon of the late 1970s and early 1980s in which investors, flnding that conventional savings and thrift methods did not pay sufficient interest to keep pace with inflation, transferred their funds to the money market and related savings and investment instruments, leading to a rapid growth in those resources and a loss of funds from institutions like savings banks.
See also: Economics
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References in periodicals archive ?
Thus, although the timing of disintermediation episodes may surely be attributed to positive spreads between market rates and the Regulation Q ceilings, the subsequent effects of disintermediations were not systematically related to the size of the rate spreads.
This development, with the regulatory changes affecting deposit rates, reduced nonprice constraints on the supply of mortgage funds, which had been associated with disintermediation at thrift institutions.
The residential construction equation used for the table incorporates no adjustments for the disintermediation effects of bank deposit rate ceilings in the 1960s and 1970s.