Financial intermediaries accommodate 3 above functions:
Maturity transformation
Converting concise liabilities to continued appellation assets (banks accord with ample cardinal of lenders and borrowers, and accommodate their adverse needs)
Accident transformation
Converting chancy investments into almost certain ones. (lending to assorted borrowers to advance the risk)
Convenience denomination
Matching baby deposits with ample loans and ample deposits with baby loans
Maturity transformation
Converting concise liabilities to continued appellation assets (banks accord with ample cardinal of lenders and borrowers, and accommodate their adverse needs)
Accident transformation
Converting chancy investments into almost certain ones. (lending to assorted borrowers to advance the risk)
Convenience denomination
Matching baby deposits with ample loans and ample deposits with baby loans
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