MNI BRIEF: Japan Corp. Loan Demand Rises - BOJ Survey

Demand for financing by Japanese corporates via banks rose from three months ago, reflecting the increase of capital investment and internal reserves, according to the Bank of Japan's senior loan officer opinion survey on bank lending practices.

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 +5 in October from +4 in July.

The index for expected fund demand for the next three months stood at +5, up from +4 from the previous survey, indicating demand will strengthen amid high uncertainties over financial conditions.

The index for demand from large companies rose to +8 from +3 in July and the index for smaller businesses also rose to +4 from -1.

Lingering concern over higher interest rates and a potential policy tweak by the BOJ were also behind stronger fund demand.

The latest survey period was from September 11 to October 12.