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. Deposit

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

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

    An account on the asset side of a company's balance sheet that ...
  4. Short-Term Investments

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

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

    A description of an investor who, when faced with two investments ...
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. The History Of The FDIC
    Retirement

    The History Of The FDIC

  4. Who Backs Up The FDIC?
    Options & Futures

    Who Backs Up The FDIC?

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center