What is the role of non-depository intermediaries?

The role of non-depository intermediaries is to serve as a bridge between savers and borrowers, facilitating transactions without taking deposits themselves. They play a crucial part in the financial system by matching those who have excess funds (savers) with those who need funds (borrowers) to finance their projects or needs. This intermediary function is vital as it helps in efficiently allocating resources within the economy.

Non-depository intermediaries often include entities like investment banks, mortgage brokers, and insurance companies. These institutions may help to facilitate loans, issue securities, or provide various financial products and services. Unlike depository institutions, such as banks and credit unions, these intermediaries do not offer traditional savings accounts or accept deposits. Instead, they rely on other methods of generating funds, such as fees for services rendered or payments for products sold.

The other options address functions that are not part of what non-depository intermediaries do. For instance, offerings of savings accounts, which pertain specifically to banks and similar institutions, do not fall under their purview. Additionally, the regulation of banks is handled by governmental and regulatory bodies rather than by non-depository intermediaries themselves. Lastly, while providing financial advice is a significant service in financial markets, it does not encaps