Banking system of Sri Lanka

financial intermediary is an institution or individual that serves as a middleman among diverse parties in order to facilitate financial transactions. Common types include commercial banks, investment banks, stockbrokers, pooled investment funds, and stock exchanges. Financial intermediaries reallocate otherwise uninvest capital to productive enterprises through a variety of debt, equity, or hybrid stockholding structures. Through the process of financial intermediation, certain asset or liabilities are transformed into different assets or liabilities.  As such, financial intermediaries channel funds from people who have surplus capital (savers) to those who require liquid funds to carry out a desired activity (investors) Benefits of financial intermediaries Through a financial intermediary, savers can pool their funds, enabling them to make large investments, which in turn benefits the entity in which they are investing. At the same time, financial intermediaries pool risk ...