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The role of bank is to “intermediate” between players who are in financial deficit and those experiencing a surplus in order to match their need and invest.

The role of bank is to “intermediate” between players who are in financial deficit and those experiencing a surplus in order to match their need and invest. 1m1BL
The role of bank is to “intermediate” between players who are in financial deficit and those experiencing a surplus in order to match their need and invest. Players who are in financial deficit seek monetary resources by placing “liabilities” on the market and by offering them to those in surplus. The problem is therefore to reconcile the preferences expressed by buyers as compared with those made by the issuers of liabilities in terms of maturity, yield, value fluctuation, etc. . Operators in surplus have difficulties in identifying and evaluating the quality of those in deficit, and they must take into account the uncertainty associated with future events, their degree of risk aversion and the preference of short term assets. On the other hand, those in deficit prefer to issue long term liabilities, to not disclose their quality of credit and, once the funds are obtained, they prefer to opt for more profitable but risky projects. As a matter of fact, a direct transfer of resources from subjects in surplus to subjects in deficit is rare. Consequently, the foundations are laid for the presence of a third party, who is able to match the different needs and to interact by transferring and finally reallocating financial resources within the economic system. Ultimately, financial intermediaries realise the channeling of savings into investments. The existence and role of financial intermediaries is explained by the traditional theory that has developed a number of reasons to justify the development of this phenomenon. Among these, we can find the function of evaluating and selecting business projects within the theoretical paradigm of incomplete markets and imperfect information. This theory emphases the activities of banks by recognizing their critical role when it comes to the ability of solving the problems of asymmetric information that are relevant to an imperfect market - adverse selection and moral hazard. Thanks to the role played by financial intermediaries, such problems may be partly solved or at least transferred to the same financial intermediaries who have the means to bear any adverse effects, thus avoiding their transfer onto a single or a small number of savers. In brief, adverse selection concerns the difficulty to select and distinguish healthy companies, those with a high credit rating, from those that are riskier. Adverse selection in the field of banking intermediaries is an issue concerning an ex-ante situation to the provision of funding. This problem surfaces in a context where many companies seek to draw from finance resources at the disposal of a given bank. Screening can be regarded as a technique to solve this problem, which the bank can implement through the employment of professionals and the use of skilled and expensive methods, unlike what a single economic agent can usually do, given the high costs and the limited resources he/she may dispose of.
The
You use this word too often, consider replacing it with
role
of
You use this word too often, consider replacing it with
bank
is to “intermediate” between players
You use this word too often, consider replacing it with
who
are in
You use this word too often, consider replacing it with
financial
You use this word too often, consider replacing it with
deficit
and those experiencing a
You use this word too often, consider replacing it with
surplus
in order to match their need and invest. Players
You use this word too often, consider replacing it with
who
are in
You use this word too often, consider replacing it with
financial
You use this word too often, consider replacing it with
deficit
seek monetary resources by placing “liabilities” on the market and by offering them to those in
You use this word too often, consider replacing it with
surplus
. The
You use this word too often, consider replacing it with
problem
is
therefore
to reconcile the preferences expressed by buyers as compared with those made by the issuers of liabilities in terms of maturity, yield, value fluctuation, etc.
Two consecutive dots
.


Operators in
You use this word too often, consider replacing it with
surplus
have difficulties in identifying and evaluating the quality of those in
You use this word too often, consider replacing it with
deficit
, and they
This phrase/word (depending on the context) can be potentially replaced with :
must
take into account the uncertainty associated with future
This phrase/word (depending on the context) can be potentially replaced with :
events
, their degree of
This phrase/word (depending on the context) can be potentially replaced with :
risk
aversion and the preference of short term assets.
On the other hand
, those in
You use this word too often, consider replacing it with
deficit
prefer to issue long term liabilities, to not disclose their quality of credit and, once the funds
are obtained
, they prefer to opt for more profitable
This phrase/word is too simple and can be replaced with:
but
risky projects.

As a matter of fact, a direct transfer of resources from subjects in
You use this word too often, consider replacing it with
surplus
to subjects in
You use this word too often, consider replacing it with
deficit
is rare.

Consequently
, the foundations
are laid
for the presence of a third party,
You use this word too often, consider replacing it with
who
is able to match the
This phrase/word is too simple and can be replaced with:
different
needs and to interact by transferring and
finally
reallocating
You use this word too often, consider replacing it with
financial
resources within the economic system.
Ultimately
,
You use this word too often, consider replacing it with
financial
You use this word too often, consider replacing it with
intermediaries
Possible spelling mistake. 'realise' is British English.
realise
the channeling of savings into investments. The existence and
You use this word too often, consider replacing it with
role
of
You use this word too often, consider replacing it with
financial
You use this word too often, consider replacing it with
intermediaries
is
This phrase/word (depending on the context) can be potentially replaced with :
explained
by the traditional theory that has developed a number of reasons to justify the development of this phenomenon. Among these, we can find the function of evaluating and selecting business projects within the theoretical paradigm of incomplete markets and imperfect information. This theory emphases the activities of
You use this word too often, consider replacing it with
banks
by recognizing their critical
You use this word too often, consider replacing it with
role
when it
This phrase/word (depending on the context) can be potentially replaced with :
comes
to the ability of solving the
You use this word too often, consider replacing it with
problems
of asymmetric information that are relevant to an imperfect market
Consider using an m-dash if you do not want to join two words.
-
You use this word too often, consider replacing it with
adverse
selection and moral hazard. Thanks to the
You use this word too often, consider replacing it with
role
played by
You use this word too often, consider replacing it with
financial
You use this word too often, consider replacing it with
intermediaries
, such
You use this word too often, consider replacing it with
problems
may be partly solved or at least transferred to the same
You use this word too often, consider replacing it with
financial
You use this word too often, consider replacing it with
intermediaries
You use this word too often, consider replacing it with
who
have the means to bear any
You use this word too often, consider replacing it with
adverse
effects,
thus
avoiding their transfer onto a single or a
This phrase/word is too simple and can be replaced with:
small
number of savers.

In brief
,
You use this word too often, consider replacing it with
adverse
selection concerns the difficulty to select and distinguish healthy
This phrase/word (depending on the context) can be potentially replaced with :
companies
, those with a high credit rating, from those that are riskier.
You use this word too often, consider replacing it with
Adverse
selection in the field of banking
You use this word too often, consider replacing it with
intermediaries
is an issue concerning an ex-ante situation to the provision of funding. This
You use this word too often, consider replacing it with
problem
surfaces in a context where
This phrase/word is too simple and can be replaced with:
many
This phrase/word (depending on the context) can be potentially replaced with :
companies
seek to draw from finance resources at the disposal of a
This phrase/word (depending on the context) can be potentially replaced with :
given
You use this word too often, consider replacing it with
bank
. Screening can
be regarded
as a technique to solve this
You use this word too often, consider replacing it with
problem
, which the
You use this word too often, consider replacing it with
bank
can implement through the employment of professionals and the
This phrase/word (depending on the context) can be potentially replaced with :
use
of skilled and expensive methods, unlike what a single economic agent can
usually
do,
This phrase/word (depending on the context) can be potentially replaced with :
given
the high costs and the limited resources he/she may dispose of.
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IELTS essay The role of bank is to “intermediate” between players who are in financial deficit and those experiencing a surplus in order to match their need and invest.

Essay
  American English
5 paragraphs
468 words
5.5
Overall Band Score
Coherence and Cohesion: 5.5
  • Structure your answers in logical paragraphs
  • ?
    One main idea per paragraph
  • Include an introduction and conclusion
  • Support main points with an explanation and then an example
  • Use cohesive linking words accurately and appropriately
  • Vary your linking phrases using synonyms
Lexical Resource: 5.5
  • Try to vary your vocabulary using accurate synonyms
  • Use less common question specific words that accurately convey meaning
  • Check your work for spelling and word formation mistakes
Grammatical Range: 6.0
  • Use a variety of complex and simple sentences
  • Check your writing for errors
Task Achievement: 5.0
  • Answer all parts of the question
  • ?
    Present relevant ideas
  • Fully explain these ideas
  • Support ideas with relevant, specific examples
Labels Descriptions
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    Currently is not available
  • Meet the criteria
  • Doesn't meet the criteria
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