MNI BRIEF: Japan Corp Loan Demand Drops - BOJ Survey

Demand for financing by Japanese corporates via banks fell from three months ago following a fall in capital investment and the improvement of fund-raising tools, according to a senior loan officer opinion survey released by the Bank of Japan on Tuesday.

The fall of capex was not consistent with the BOJ's more optimistic view, which could increase concern over a moderate economic recovery.

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 – fell to +1 in January from +5 in October.

The index for fund demand expected for the next three months stood at +4, down from +5 from the previous survey, indicating appetite will remain stable on the back of persistent economic recovery.

The index for demand from large companies fell to +1 from +8 in October, while the index for small businesses also fell to +2 from +4.