Channelling Savings

It is seen that although total savings for 1966 amounted to over £7,000 million, less than a third of this represented savings within the personal sector. During 1965 only about £700 million had been used for the net acquisition of financial assets by this sector (the remaining personal saving being in the form of increased expenditure on such items as housing and stocks of goods). However, whereas the savings of Government, public corporations and companies are generally applied directly to capital expenditure, personal savings applied to the acquisition of financial assets are channelled through the market. Some of the financial intermediaries which mobilise these savings, particularly those which channel funds to business, are briefly reviewed. An increased tendency for persons to invest indirectly through financial intermediaries rather than directly in securities is noted.