MNI BRIEF: Japan Corp Loan Demand Rises: BOJ Survey
MNI (TOKYO) - Demand for financing by Japanese corporates via banks rose slightly from three months ago in the wake of increased sales and capital investment, and the drop of internally-generated funds, the senior loan officer opinion survey on bank lending practices released by the Bank of Japan showed on Thursday.
The index for corporate fund demand rose to +10 in January from +9 in October, while the benchmark for fund demand expected for the next three months stood at +3, unchanged from the previous survey, indicating it will remain solid.
The index for demand from large companies stood +10, up from +6 in October, while the same for smaller businesses stood unchnaged at +5.
The survey results showed that the impact of the rate hike to 0.25% in July 2024 on corporate financing was limited.
The BOJ is expected to raise the policy rate to 0.50% on Friday and bank officials will carefully monitor its impact of corporate financing and households' debts. (See MNI POLICY: BOJ To Hike Unless Stocks Slide)
The latest survey period was from December 10 to January 14.