disintermediationn.
Economics (originally U.S.).
A reduction in the use or role of banks and savings institutions as intermediaries between lenders and borrowers; the transfer of savings and borrowings away from the established banking system.
ΘΚΠ
society > trade and finance > financial dealings > banking > [noun] > specific banking procedures
standing order1619
out-clearing1836
credit transfer1847
clearance1858
resumption1866
money transfer1873
in-clearing1878
wire transfer1878
clearing1883
giro1896
lockbox1957
transfer payment1964
disintermediation1966
reintermediation1970
1966 N.Y. Times 24 Sept. 27/1 There has already been a considerable diversion of money this year from financial intermediaries..into the securities markets... Figures disclosing the extent of this process, known as ‘disintermediation’, were made public today.
1968 N.Y. Times 2 May 67/1 The refinancing got high marks from Wall Street because of the Government's effort to lessen ‘disintermediation’—heavy withdrawals from savings institutions for direct investment in the securities market.
1975 Encounter Feb. 46/1 I am told that economists have just discovered disintermediation, which they believe means the removal of money from savings banks.
1978 U.K. Econ. Outlook (National Westminster Bank) 3 July 1 The effect of the ‘corset’ will be to cause ‘disintermediation’, as public sector borrowers obtain funds direct from the markets rather than through the banking system.
1981 Economist 24 Jan. 28/1 The idea was to spare the thrifts from the recurrent flights of depositors anxious to get better returns on their money: the dread ‘disintermediation’.
1986 Times 3 Jan. 13/8 Securitization is really just another word for disintermediation.
This entry has not yet been fully updated (first published 1993; most recently modified version published online September 2019).
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n.1966