Finanssivälittäjät

Finanssivälittäjät, known in English as financial intermediaries, are entities that facilitate financial transactions between different parties. They play a crucial role in the functioning of financial markets by connecting savers and borrowers, investors and issuers of securities. Examples of financial intermediaries include banks, credit unions, investment companies, insurance companies, and pension funds. These institutions act as a bridge, channeling funds from those who have surplus capital to those who require it for investment, consumption, or other purposes.

The primary functions of financial intermediaries are to reduce transaction costs, manage risk, and provide liquidity. By pooling funds from many individuals, they can lend larger amounts, thereby reducing the administrative burden associated with individual loans. They also transform assets, for instance, by taking short-term deposits and making long-term loans, which benefits both depositors seeking liquidity and borrowers needing longer-term financing. Furthermore, intermediaries often diversify investments, which helps spread risk among their clients and the institution itself.

In Finland, the term finanssivälittäjät encompasses a broad range of institutions operating within the financial sector. These entities are subject to strict regulation and supervision by authorities like Finanssivalvonta (the Financial Supervisory Authority) to ensure market stability and protect consumers. The services they offer are essential for economic growth, enabling capital formation, investment, and the smooth flow of money throughout the economy.