Disintermediation: Why, How and What Can Be Expected?

This paper deals with the causes and consequences of the disintermediation that has been observed for some time in Europe, in particular since the financial crisis. Firstly, we present the evolution of bank and market-based financing, which can be largely explained by the singular current economic context. Secondly, we analyse the objectives of some national and European institutions which campaign for more disintermediation, against the so-called « overbanking ». Last, we critically review the effects of disintermediation in terms of financing for (small and medium) enterprises, monetary policy efficiency, and financial and real stability.