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MNI BRIEF: Japan Corp Loan Demand Rises: BOJ Survey

(MNI) Tokyo
(MNI) Tokyo

Demand for financing by Japanese corporates via banks rose from three months ago as businesses increased internal funds amid a rise in capital investment and sales, and a worsening of funding conditions, according to the Bank of Japan’s quarterly survey of senior loan officers at 50 banks released on Monday.

The survey results showed that corporate funding demand remains solid on the back of continued high costs.

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 - rose to +8 in January from +5 in October.

The index for fund demand expected for the next three months stood at +7, down from +8 in the previous survey, indicating that funding demand will remain firm amid high costs.

The index for demand from large companies stood at +10, up from +6 in October, and the index for smaller businesses stood at +6, also up from +4. The latest survey period was from December 9 to January 12.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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