MNI DATA IMPACT: Corp Loan, Household Demand Rise: BOJ Survey

     TOKYO (MNI) - Japanese corporate demand for financing via bank loans rose

in October from three months ago, the Bank of Japan's latest quarterly survey of

senior loan officers at 50 banks showed Wednesday.

     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 -- stood at +3 in October, up from -2 in July, helped by a pick-up in

both sales and capital investment. 

     The latest survey period was from September 10 to October 10.

     Other key points from the survey:

     --The index for demand from large companies rose to -4 from -5 and the

index for small businesses also rose to +4 from -1.

     --The index for fund demand expected for the next three months stood at -1,

down from zero in the previous survey.

     --The index showing household demand for funds stood at +8 in October, up

-1, due to higher demand for housing investment and consumption before the sales

tax hike to 10% from 8% on Oct. 1.

     --The senior loan officer index for corporate fund demand hit a record high

of +43 in Q4 2008, up from -5 in the previous three months. The global financial

crisis hurt companies' ability to borrow directly from financial markets. The

BOJ began the survey in April 2000.

     in the wake of the increase of sales and capital investment, 

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MAJDS$,M$A$$$,M$J$$$]