Another important, new feature of the FIT methodology is its ability to distinguish between direct and indirectchannels of information transmission. In contrast to the above allocation of regions to variables, in which α¯ and β¯ measured the direct relationship between stock markets in Europe and Asia, let the returns of European markets enter the equations as variable z instead of x By Boulis Ibrahim, Janusz Brzeszczynski
A financial intermediary typically facilitates the channeling of funds between lenders and borrowers indirectly, in the form of a loan or a mortgage. Sometimes the intermediary may lend money directly via the financial markets. This is known as financial disintermediation.