Finanssivälitys

Finanssivälitys refers to financial intermediation in Finnish. It is the process by which financial institutions, such as banks, investment firms, and insurance companies, act as intermediaries between savers and borrowers. These institutions channel funds from those who have surplus capital to those who need capital for investment, consumption, or other purposes. This intermediation plays a crucial role in the functioning of the economy by facilitating the flow of money and enabling efficient allocation of resources.

The core function of finanssivälitys involves mobilizing savings, which can then be provided as loans or investments. Financial intermediaries assess the creditworthiness of borrowers, manage risks associated with lending and investing, and provide liquidity to the market. They offer a range of financial products and services, including deposit accounts, loans, mortgages, insurance policies, and investment funds. By pooling funds from many individuals and institutions, intermediaries can undertake larger and more diversified investments than individuals could on their own, thereby reducing risk and increasing potential returns.

Key players in finanssivälitys include commercial banks, which are primary deposit-taking and lending institutions, and investment banks, which help corporations raise capital through issuing stocks and bonds. Insurance companies also act as intermediaries by collecting premiums and investing them to cover future claims. The efficiency and stability of the financial intermediation system are vital for economic growth, as they impact the availability and cost of capital for businesses and individuals. Regulatory oversight is essential to ensure the soundness and fairness of these financial operations.