Who lends to borrowers?
The ultimate lenders lend to borrowers either directly or indirectly via financial intermediaries, Who are the players in the financial system? From a regional standpoint, the financial system, as mentioned above, facilitates the exchange of funds between borrowers and lenders.
Is a borrower a lender or a borrower?
The members of these sectors may be either lenders or borrowers or both at the same time. For example, a member of the household sector may have a mortgage bond (= borrower by the issue of a non-marketable debt instrument) and at the same time hold a balance on your accounts at the bank (= a lender; a holder of money).
What is a lender in banking?
A lender is an individual, a public or private group, or a financial institution that makes funds available to another with the expectation that the funds will be repaid. Repayment will include the payment of any interest or fees. ... Lenders may provide funds for a variety of reasons, such as a mortgage, automobile loan or small business loan.