In the form of checking accounts, savings accounts, or other types of bank deposits.

Financial intermediation is an important activity in the economy because it allows funds to be channeled from people who might otherwise not put them to productive use to people who will. In this way, financial intermediaries help promote a more efficient and dynamic economy.

Thus, banks are the most important of a number of financial intermediaries that channel funds from people who might not put them to productive use to people who can do so. Banks also play a critical role in the creation of money and have been important in the rapid pace of recent financial innovation.