Reintermediation

AAA

DEFINITION of 'Reintermediation'

1. Individuals withdrawing funds from nonbank investments such as real estate and depositing into bank and depositary financial-institution accounts. Reintermediation usually occurs to secure federal deposit insurance on account funds, out of uncertainty about the movement of the financial markets or changes in the interest-rate environment.

2. Opposite of disintermediation.

INVESTOPEDIA EXPLAINS 'Reintermediation'

Reintermediation can also mean the re-emergence of, or reintroduction of, middlemen or intermediaries that had previously been removed from a process or industry. The term is usually used in this context in retail channels, such as when an industry decides to return to selling to wholesalers and ceases selling directly to consumers.

RELATED TERMS
  1. Short-Term Investments

    An account in the current assets section of a company's balance ...
  2. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  3. Risk Averse

    A description of an investor who, when faced with two investments ...
  4. Deposit

    1. A transaction involving a transfer of funds to another party ...
  5. Disintermediation

    1. In finance, withdrawal of funds from intermediary financial ...
  6. Long-Term Investments

    An account on the asset side of a company's balance sheet that ...
Related Articles
  1. Bag The Best Bank Account
    Insurance

    Bag The Best Bank Account

  2. Are CDs Good Protection For The Bear ...
    Insurance

    Are CDs Good Protection For The Bear ...

  3. Bank Failure: Will Your Assets Be Protected?
    Options & Futures

    Bank Failure: Will Your Assets Be Protected?

  4. The History Of The FDIC
    Retirement

    The History Of The FDIC

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center