Households' net financial assets increased in 2006 despite growing indebtedness

Abstract

Domestic sectors' financial assets and liabilities did not change dramatically in 2006. While households' indebtedness continued to increase the rapid growth in financial assets led to an increase in the sector's net financial assets. Non-financial corporations had little need to acquire new debt financing because of the high level of internal finance generated by good profitability. Assets managed by mutual funds continued to increase robustly, for the fourth consecutive year.