MNI: BOJ Survey: Corp Loan Demand Drops, Households Unchanged

     TOKYO (MNI) - Japanese corporate demand for financing via bank loans in

April fell from three months ago as the slowing global economy decreased

companies' sales and capital investment, according to the Bank of Japan's

quarterly survey of senior loan officers at 50 banks released Friday.

     The index for corporate fund demand -- calculated by subtracting the number

of banks reporting a decline in lending from the number of those reporting an

increase -- came in at +3 in April, down from +4 in January. The latest survey

period was from March 11 to April 10.

     Other key points from the latest survey;

     --The index of demand by large companies fell to -2 from zero, but the

index for small businesses rose to +5 from +3.

     --The index for fund demand expected for the next three months was

unchanged at 0.

     --The index showing household demand for funds stood unchanged at +3.

     --The senior loan officers index for corporate fund demand hit a record

high of +43 in the Oct-Dec quarter of 2008, up from -5 in the previous three

months. The global financial crisis hurt companies' ability to borrow directly

from financial markets. The BOJ began the survey in April 2000.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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