TOKYO (MNI) – Outstanding bank loans in Japan rose 0.5% from a year
earlier in December, posting the third consecutive year-on-year rise, as
corporate funding demand continues recovering gradually, Bank of Japan
data released Thursday showed.
Bank lending rose 0.5% on the year to Y395.8 trillion in December,
after rising 0.2% in November and 0.1% in October, which was the first
y/y rise in 23 months. It fell 0.3% in September.
December’s 0.5% rise was the largest gain since October, 2009, when
lending was up 1.5%.
Corporate fund demand has continued increasing gradually,
reflecting reconstruction needs after the 2011 March earthquake
disaster.
Funding demand for day-to-day business operations remained solid,
pushing up bank loans to firms, a BOJ official told reporters.
He added that loans to electric companies continued increasing.
In December, outstanding loans by city banks, the largest group of
lenders in Japan, fell 1.0% from a year earlier, the 25th consecutive
month of y/y drop after -1.4% in November.
The decrease in lending by city banks was offset by a continued
rise in lending by regional banks, up 2.0% in December, after rising
1.9% in November.
The balance of commercial paper issuance stood at Y10.12 trillion
at the end of December, down 1.5% y/y following a 2.3% fall in November.
tokyo@marketnews.com
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