Financial Intermediation What is the financial intermediation? The saving / investment process in capitalist economies is organized around financial intermediation, making them a central institution of economic growth. Financial intermediations are firms that borrow from consumer/saver and lend to companies that need resources for investment. Who is the financial intermediator? An institution that holds funds from lenders in order to make loans to borrowers. According to the dominant economic view of monetary operations the following institutions are or can act as financial intermediaries: · Banks · Mutual savings banks · Savings banks · Building societies · ...