disintermediation

(redirected from re-intermediation)
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 ?
Rather than ICTs leading to disintermediation and greater power for small-scale producers vis-a-vis international competitors, better connectivity has resulted in re-intermediation through the emergence of online platforms such as TripAdvisor.
Since costs other than funding costs - credit risks, regulatory capital requirements, collateral - are higher for loans to small firms, we anticipate that the funding subsidy from TLTROs will largely lead to a re-intermediation of loans to rated companies that had previously substituted into debt issuance when bank credit supply was constrained.
Given the much higher confidence in Americans' own banks and the current trend toward re-intermediation resulting from savers "shifting to safety," it follows that more Americans intend to increase their money with their primary bank than to decrease it.