TOKYO (MNI) – Outstanding bank loans in Japan rose 0.7% from a year
earlier in January, posting the fourth consecutive year-on-year rise, as
corporate funding demand continues recovering gradually, Bank of Japan
data released Wednesday showed.
Bank lending rose 0.7% on the year to Y396.7 trillion in January,
after rising 0.5% in December and 0.2% in November.
January’s 0.7% rise was the largest y/y gain since October 2009,
when lending was up 1.5%.
Corporate fund demand has continued increasing gradually,
reflecting reconstruction needs after the March earthquake disaster.
Funding demand for day-to-day business operations and loans to
electric power firms remained solid, pushing up bank loans to firms, a
BOJ official told reporters.
In January, outstanding loans by city banks, the largest group of
lenders in Japan, fell 0.6% from a year earlier, the 27th consecutive
month of y/y drop after -1.0% in December.
The decrease in lending by city banks was offset by a continued
rise in lending by regional banks, up 2.1% in January, after rising 2.0%
in December.
The balance of commercial paper issuance stood at Y10.06 trillion
at the end of January, up 1.3% y/y following a 1.5% fall in December.
tokyo@marketnews.com
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