The latest Australian National Accounts, with financial flows, capital accounts and household balance sheet estimates for the March 2017 quarter show the spikes in lending and borrowing among the non-financial and household sectors over recent quarters are declining *.Some of the observations by the ABS are as follows:In the March quarter 2017, non-financial corporations and households invested A$44.2 billion and $36.3 billion, respectively. Non-financial corporations funded these investments through gross saving ($26.9 billion) and net borrowing ($15.0 billion). Households funded their investment through gross saving ($36.5 billion). The net result is that in seasonally adjusted terms, total capital formation in the Australian economy has been flattened out since mid-2012, with investments more matched to savings.During March quarter 2017, national net borrowing was $5.5 billion with non-financial corporations borrowing $15.0 billion. By contrast, financial corporations and general government lent $6.6 billion and $2.9 billion, respectively, to other sectors.Net borrowing of $15.0 billion by non-financial corporations was a result of incurring $13.6 billion in liabilities and disposal of financial assets ($1.3 billion). Non-financial corporations' net incurrence of liabilities was driven by issuance of equity ($12.3 billion). Financial corporations were net lenders ($6.6 billion), acquiring $1.3 billion in financial assets while reducing $5.3 billion in liabilities. Financial assets acquired were single name paper ($15.3 billion) and bonds ($15.6 billion). These asset acquisitions were offset by derivative settlements ($31.4 billion). Financial corporations reduced liabilities through the settlement of derivative contracts ($32.4 billion) and the repayment of bond liabilities ($11.2 billion), this was offset by an increase in net equity in reserves of $17.1 billion and acceptance of deposits ($13.8 billion).Households remained net borrowers ($0.1 billion) in March quarter 2017. Households acquired $27.7 billion in financial assets through bank deposits ($10.7 billion) and increases net equity in reserves of pension funds ($19.5 billion). Households incurred liabilities through loan borrowings ($21.3 billion) and other accounts payable ($7.1 billion).*NOTE: These accounts are at best indicative, with the ABS conceding that some data is only "of fair quality", but the overall picture is consistent. Also, as the ABS notes: "Liabilities of the financial sector are excluded because of the role of the financial institutions in the economy - they borrow in order to lend."