Take the point of view of banking establishments

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Taking the point of view of companies, categorize and compare the different sources of external financing available to them and explain the criteria for choice (Explain the criteria for choosing between the different forms of external financing)

- Take the point of view of banking establishments!

- Financial intermediation: transformation of deposits mainly at ST into loans mainly at LT; counterparty, credit, interest rate and liquidity risks assumed by the bank; remuneration: interest margin to reflect the risk of the counterparty

- Disintermediation: no balance sheet or counterparty risks; the bank puts investors in contact with companies in need of capital, plays the role of consultant, for example, for companies in the context of mandatory issues; compensation: commission

Reference no: EM133118179

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