— Japan Sep Bank Lending -0.3% Y/Y Vs Aug -0.5%
— Japan Sep Bank Lending Posts 22nd Y/Y Fall in Row
TOKYO (MNI) – Outstanding bank loans in Japan fell from a year
earlier in September, down almost two years in a row as funding demand
for capital investment remained weak amid a continued shift to raising
cash from markets, Bank of Japan data released Thursday showed.
Bank lending fell 0.3% on the year to Y393.0 trillion in September,
a 22nd straight y/y drop after -0.5% in August. The last y/y rise was
+0.1% in November 2009.
The pace of decline has decelerated in recent months as corporate
fund demand increased somewhat, reflecting reconstruction needs after
the March earthquake disaster.
In addition, there was an increase in fund demand from electric
power companies, which are having difficulties in issuing bonds in light
of losses from shutting down nuclear power plants, and from firms that
are seeking capital for mergers and acquisitions, a BOJ official told
reporters.
In September, outstanding loans by city banks, the largest group of
lenders in Japan, fell 2.3% from a year earlier, the 22nd consecutive
month of y/y drop after -2.6% in August.
The balance of commercial paper issuance stood at Y8.5 trillion at
the end of September, down 8.3% y/y following a 2.3% fall in August.
tokyo@marketnews.com
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