INTERSECTORAL FINANCIAL FLOWS
DURING JUNE QUARTER 2017
During June quarter 2017, financial corporations borrowed a net $20.4b from households, this was primarily through households transactions in net equity in reserves of pension funds ($54.9b), which were partially offset by loan and placements lending to households ($37.6b).
Financial corporations borrowed a net $12.9b from general government, primarily driven by deposits ($16.5b), loan borrowings ($8.4b) and issuances of one name paper ($5.5b). These were partially offset by financial corporations purchasing $19.0b of government bonds.
Non-financial corporations borrowed a net $12.4b from rest of world primarily through equity issuances ($23.1b), this was partially offset by deposits placed with the rest of world ($9.3b).
General government extinguished net claims with non-financial corporations by $9.7b, driven by the withdrawal of equity ($9.4b).
AT END OF JUNE QUARTER 2017
At the end of June quarter 2017, net claims on non-financial corporations were $1,025.2b from rest of world, $964.7b from financial corporations, $478.0b from the household sector and $366.0b from general government.
Net claims on financial corporations were $1,621.0b from the household sector, these were driven by net equity in reserves ($2,333.8b) and deposit holding ($1,006.4b), while being offset by loan borrowings ($2,006.2b).