MNI BRIEF: Japan Corp Loan Demand Rises - BOJ Survey
MNI (TOKYO) - Demand for financing by Japanese corporates via banks rose over Q3 amid sales and capital investment increases, and the drop of internally-generated funds, according to the senior loan officer opinion survey on bank lending practices released by the Bank of Japan Tuesday.
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 +9 in October from +6 in July.
The index for fund demand expected over the next quarter stood at +3, down from +6, indicating fund demand will decrease.
The index for demand from large companies stood +6, unchanged from July, and the index for smaller businesses stood at +5, up from +1 over the quarter.
Lingering concern over higher interest rates due to the expected BOJ rate hike, which could occur as early as December, drove the results.
The latest survey period was from Sept 10 to Oct 10.