INTERSECTORAL FINANCIAL FLOWS
DURING MARCH QUARTER 2017
During March quarter 2017, the rest of world sector borrowed $19.3b from financial corporations, primarily through issuances of one name paper ($14.8b) and bonds ($10.5b). These were partially offset by loan repayments ($18.0b) by rest of world.
Financial corporations borrowed a net $7.2b from general government, primarily driven by loan borrowings ($5.7b), acceptances of deposits ($5.6b), and issuances of one name paper ($1.8b). These were offset by financial corporations purchasing $5.8b of government bonds.
Financial corporations borrowed a net $7.3b from non-financial corporations, through the acceptance of deposits ($4.9b) and issuance of debt securities ($3.8b). These were partly offset by loan borrowings ($1.9b) by non-financial corporations.
General government borrowed a net $11.7b from rest of world, driven by government bond issuances ($14.2b), and partially offset by general government purchases ($2.5b) of rest of world equity.

AT END OF MARCH QUARTER 2017
At the end of March quarter 2017, net claims on non-financial corporations were $1,027.6b from rest of world, $954.6b from financial corporations, $470.6b from the household sector and $348.9b from general government.
Net claims on financial corporations were $1,562.8b from the household sector, these were driven by net equity in reserves ($2,230.6b) and deposit holding ($1,005.1b), while being offset by loan borrowings ($1,968.2b).