A type of transformation that is performed by banks and other depositary institutions (financial intermediaries) whereby the small amounts deposited with them are transformed into large loans, usually for business borrowers. This involves packaging short-term deposits into medium- to long-term loans. The deposits are typically rolled over on a periodical basis (due to renewal of deposits and procurement of new deposits).

In general, denomination transformation involves an intermediary selling liabilities in denominations that differ from those of its assets.