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disintermediation

 - 5 dictionary results

dis⋅in⋅ter⋅me⋅di⋅a⋅tion

[dis-in-ter-mee-dee-ey-shuhn]
–noun
the act of removing funds from savings banks and placing them into short-term investments on which the interest-rate yields are higher.

Origin:
1965–70; dis- 1 + intermediation
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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dis·in·ter·me·di·a·tion   (dĭs-ĭn'tər-mē'dē-ā'shən)   
n.  Withdrawal of funds from intermediary financial institutions, such as banks and savings and loan associations, in order to invest in instruments yielding a higher return.
The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Financial Dictionary

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.

Investopedia Commentary

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

See also: Return

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Financial Dictionary

disintermediation

The withdrawal of funds from financial intermediaries such as banks, thrifts, and life insurance companies in order to invest directly with ultimate users. Disintermediation was more of a problem when financial intermediaries were limited in the returns they could pay to savers. Deregulation of financial intermediaries was intended to dampen the periodic swings toward disintermediation. Compare intermediation.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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Legal Dictionary

Main Entry: dis·in·ter·me·di·a·tion
Pronunciation: dis-"in-t&r-"mE-dE-'A-sh&n
Function: noun
Etymology: from the investor's bypassing of the intermediate institution
: the diversion of savings from accounts with low fixed interest rates to direct investment in high-yielding instruments
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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