Lenders

• Individuals

  Lend funds to institutions for the purpose of getting a return. Individuals holding their wealth but do not spend invest in assets but for those who avoid risk, individuals place funds on interest-bearing deposit funds
• Business

  Firms are more likely to deposit funds if interest rates are high enoguh that saving is more profitable than investing in expansion
• Government

  Governments tend to be lenders when the budget is in surplus. When this occurs, economic activity levels are high and the RBA and givernment implemet contractionary policies
• International

  Australia has had historically low savings rates and rely on overseas saving to finance domestic consumption and investment. Foreign liability is when money is borrowed from overseas