INTERSECTORAL FINANCIAL FLOWS
DURING DECEMBER QUARTER 2016
During December quarter 2016, rest of world borrowed a net $23.4b from financial corporations, primarily through loans and issuance of debt securities, which were partially offset by derivatives settlement.
The household sector incurred net claims of $16.1b on financial corporations through net equity in reserves of pension funds and deposits, which were partially offset by loan borrowings.
General government reduced net claims by $20.2b from non-financial corporations driven by the withdrawal of equity.
Non-financial corporations borrowed a net $17.5b from rest of world, primarily through equity and bond issuances, and these were partially offset by loan repayments.
AT END OF DECEMBER QUARTER 2016
At the end of December quarter 2016, net claims on non-financial corporations were $1,021.0b from rest of world, $955.0b from financial corporations, $453.8b from the household sector and $346.3b from general government.
Net claims on financial corporations were $1,506.1b from the household sector, these were driven by net equity in reserves and deposit holdings.