Financial intermediation is the process by which financial institutions act as intermediaries between economic agents with surplus funds and those with deficit funds, transforming assets and liabilities in the process. As a fundamental concept and extensive research area within financial economics, it investigates the structure, function, and performance of financial institutions and markets, examining the mechanisms used for pooling savings, managing various risks (such as credit, liquidity, and maturity transformation), producing and disseminating information, and facilitating payment systems. Its significance lies in its critical role in enhancing the efficiency of capital allocation, reducing transaction and information costs, and contributing to economic stability and growth.