On the theory of international financial intermediation

Financial intermediation involves the transformation of financial assets and liabilities in whatever form with respect to place, scale, maturity, and risk. The financial element is represented by a claim on money in the future by holding financial titles. The intermediation element is accounted for...

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Bibliographic Details
Published inDe Economist (Netherlands) Vol. 140; no. 4; pp. 470 - 487
Main Author Scholtens, Lambertus J R
Format Journal Article
LanguageEnglish
Published Leiden H. E. Stenfert Kroese 01.01.1992
Springer Nature B.V
Subjects
Economic theory
International finance
Manycountries
Studies
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Summary:Financial intermediation involves the transformation of financial assets and liabilities in whatever form with respect to place, scale, maturity, and risk. The financial element is represented by a claim on money in the future by holding financial titles. The intermediation element is accounted for by the transformation and information processing technologies of the financial intermediary. Market imperfections have resulted in the emergence of institutions specializing in financial intermediation. They use some intermediating technology to overcome, wholly or partially, the market imperfections. Costs, especially in transacting, information gathering, and contracting, asymmetric information, and regulation are the main categories of market imperfections held responsible for financial intermediation. International financial intermediation is the financial transformation process that involves cross-currency and/or cross-border elements.
ISSN:0013-063X
1572-9982
DOI:10.1007/BF01725240