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Disintermediation is the removal of intermediaries from a process, the cutting out of the middleman. It has become more important in financial markets as borrowers have tended to turn away from banks as a source of funds and to the issuance of securities on capital markets. Instead of borrowing from a bank companies have tended to borrow directly from investors by issuing bonds and asset backed securities (ABS). Another example of disintermediation would be where a manufacturer sells directly to its customers rather than via a retailer.