In: Finance
Financial Intermediary is an entity that basically acts as middle person between two parties to enter a financial transactions such as banks, mutual funds ,brokers,depositories etc.They provides number of facities to the customer such as liquidity,ease of operation etc.We can trust financial Intermediary but not in all areas of operation.For banking,finance and insurance realted areas they can be trusted because their level of operation and strong regulation.However in the area of investment,advances in technoy they acts as threat and they can't be trusted totally.
We should regulate financial Intermediary upto that extent so that their will be stability in the economy and their contribution towards nation building should increases.They play a very important part in the financial system of the economy so they should not be excessive regulated so that they won't be able to operate well.They should be regulated through framing laws and regulatory authority.