Evolution of scientific concepts of financial intermediation

Abstract

Subject. The article examines the evolution of scientific concepts of financial intermediation as a key institution of the modern economy. The study focuses on theoretical approaches to explaining the nature, functions, and role of financial intermediaries in resource allocation, risk reduction, and maintaining financial system stability. Objectives. The aim is to systematize and analyze the evolution of financial intermediation theory—from classical models to modern concepts—considering their continuity and the influence of external economic and technological factor. Methods. The methodological basis includes comparative analysis, institutional and functional approaches, and elements of empirical generalization. Results. We identified and compared key criteria for evaluating theories of financial intermediation, established the continuity between major theoretical approaches, enabling to trace changes in views on the nature and functions of intermediaries. Furthermore, we described mechanisms of asset and risk transformation. The study also addresses whether decentralized finance constitutes an independent theoretical paradigm or continues existing approaches. The results are applicable for improving research in finance and formulating strategies for regulation and sector development. Conclusions. The functional content of financial intermediation has expanded considerably and is integrated into modern economic models. Modern theories view intermediaries as system-forming elements that ensure the stability and development of the financial system.