DEFINITION of 'Disintermediation'

1. In finance, withdrawal of funds from intermediary financial institutions, such as banks and savings and loan associations, in order to invest them directly.

2. Generally, removing the middleman or intermediary.

BREAKING DOWN 'Disintermediation'

Disintermediation is usually done in order to invest in instruments yielding a higher return.

  1. Disintermediary

    Anything that removes the "middleman" (intermediary) in a supply ...
  2. Reintermediation

    1. Individuals withdrawing funds from nonbank investments such ...
  3. Current Account, Savings Account ...

    CASA accounts are most prominent in middle and southeast Asia, ...
  4. Middleman

    A slang term for an intermediary in a transaction or process ...
  5. Return

    The gain or loss of a security in a particular period. The return ...
  6. Financial Intermediary

    An entity that acts as the middleman between two parties in a ...
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