How are savers and borrowers linked through financiar institutions?

Savers and borrowers are linked through financial institutions, such as banks, which act as intermediaries between the two. Savers deposit their funds into accounts, allowing banks to pool these resources. The banks then lend a portion of these deposits to borrowers, facilitating access to capital for individuals and businesses. This relationship enables savers to earn interest on their deposits while providing borrowers with the necessary funds for investment or consumption.