Financial intermediation of banks: theory and new practice

The activity of banks as financial intermediaries has the socio-economic meaning which is the basis for the study of their characteristics with the aim of improving the methodology, regulation and supervision of their work in the modern realities. The article analyses the theoretical foundations of the function of financial intermediation of banks in the institutional economics. The attention is paid to the methodological study of intermediary function of banks. The practical aspects of new practical aspects of the mediation activities of banks in relation with their participation in public purchases are studied. The study of the characteristics of the financial intermediation of banks allowed revealing its role in improving the functioning of the contract system in public purchases. In the process of the study of the practice of intermediary activities of banks the main trends in the development of such services in the area of public purchases were identified. Among them, for example, an increase in the number of banks that provide the intermediary services in support of contracts and issuance of bank guarantees is shown...