Long term funds are required for long term investments and projects. There are several factors that affect the availability of long term funds, including domestic savings, net capital inflows from abroad, gross domestic capital formation, well-functioning financial markets and capital markets, financial institutions, and the demand from users of long term funds such as private companies and the government. The overall savings rate depends on savings from households, private corporations, and the government. Financial markets and institutions play an important role in channeling funds between savers and borrowers.