Dishonour and Disintermediation: Difference between pages

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''Law.''
Disintermediation refers to the general process of cutting out of the financial intermediary by companies which are in a position to borrow and lend funds between themselves, or to directly access the capital market.


In commercial law, the failure to honour a negotiable instrument. This may be by non-acceptance, or by non-payment.
Disintermediation developed as consequence of the worsening credit quality of banks following the debt crisis in the 1980s, which resulted in many large companies commanding credit ratings that were as good as, or better than, the banks.


== See also ==
== See also ==
* [[Negotiable instrument]]
* [[Capital market]]
* [[Intermediation]]


[[Category:Regulation_and_Law]]

Revision as of 14:19, 23 October 2012

Disintermediation refers to the general process of cutting out of the financial intermediary by companies which are in a position to borrow and lend funds between themselves, or to directly access the capital market.

Disintermediation developed as consequence of the worsening credit quality of banks following the debt crisis in the 1980s, which resulted in many large companies commanding credit ratings that were as good as, or better than, the banks.

See also