Peculiarities of financial intermediation in Ukraine

The emergence of financial intermediation in history was the result of the evolution of the process of distribution of functions in the field of financial services. Over time, this process became an important and independent branch of the economy. Modern financial intermediaries, forming the structure of the financial market, play a key role in ensuring effective interaction between those who have temporarily free funds and those who need them. They also help to significantly reduce the cost of financial transactions for businesses, as well as effectively spread and reduce risks among different investors. In addition, they help to increase the return on loan capital and improve portfolio asset management capabilities. Financial intermediaries are considered as financial institutions that specialize in collecting temporarily available funds from various market participants in order to provide financial services and meet the financial needs of participants in financial transactions, the main motive of which is to make a profit. The activity of financial intermediaries is important for the optimal functioning of the money market and, ultimately, for the development of a market economy. The main goal of their economic activity is to create the most favorable conditions for the successful functioning of the main participants of the money market. This means that financial intermediaries are directed to the outside world, to the real economy, in order to increase the efficiency of the subjects of this economy.