Business and Personal Finance Dictionary

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• DISINTERMEDIATION
  
  1. The investing of funds that would normally have been placed in a bank or other financial institution (financial intermediaries) directly into investment instruments issued by the ultimate users of the funds. Investors and borrowers transact business directly and thereby bypass banks or other financial intermediaries. 2. The elimination of intermediaries between the first case provides of capital and the ultimate users of capital.
  
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