Japan May Bank Lending +0.4%, Up For 8 Months; Apr +0.4%

TOKYO (MNI) – Outstanding bank loans in Japan rose 0.4% from a year
earlier to Y394.4 trillion in May, posting the eighth straight y/y rise
on a gradual recovery in corporate funding demand, Bank of Japan data
released Friday showed.

The pace of growth in bank lending remained low in May after
slowing to +0.4% in April from +0.9% in March.

In May, outstanding loans by city banks, the largest group of
lenders in Japan, slumped 1.3% from a year earlier, the 31st consecutive
month of y/y decline after -1.3% in April.

The decrease in lending by city banks was offset by a continued
rise in lending by regional banks, up 2.1% in May versus +2.1% in April.
It was the 24th consecutive y/y rise.

The balance of commercial paper issuance stood at Y9.39 trillion at
the end of May, up 0.5% y/y following a 2.4% rise in April.

tokyo@marketnews.com
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