A critique on the theory of financial intermediation

Bert Scholtens*, Dick Van Wensveen

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

53 Citations (Scopus)


This comment discusses the review by Franklin Allen and Anthony Santomero of the theory of financial intermediation in the 20th anniversary special issue of the Journal of Banking and Finance. We do not fully agree with their view that risk management is only of recent importance to the financial industry and with putting central the concept of participation costs. We suggest how the theory of financial intermediation might be developed further in order to understand present-day phenomena in the financial services sector.

Original languageEnglish
Pages (from-to)1243-1251
Number of pages9
JournalJournal of Banking & Finance
Issue number8
Publication statusPublished - Aug 2000


  • Banks
  • E51
  • Financial intermediation
  • Financial system
  • G10
  • G20
  • L23
  • Risk management
  • Transformation


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