MNI DATA IMPACT: Japan Corp Loan Demand Surges: BOJ Survey

--Financing Demand By Japanese Firms Hits Record High in Latest Period

     TOKYO (MNI) - Demand for financing by Japanese corporates via bank loans

posted a record high in July from the previous three months, according to the

Bank of Japan's latest quarterly survey of senior loan officers at 50 banks

released on Friday.

     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 +59 in July, up from +14 in April, as firms attempted to

increase cash holdings amid a worsening of financing caused by the spread of the

coronavirus.

     The previous high was +43 in Q4 2008, up from -5 in the 3 months prior to

that, when the global financial crisis hurt companies' ability to borrow

directly from financial markets. The BOJ began the survey in April 2000.

     The latest survey period was from June 9 to July 8.

     Other key points from the survey:

     --The index for demand from large companies rose to +46 from +6 and the

index for small businesses rose to +54 from +13.

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

+29, slowing from +46 in the previous survey.

     --Household demand for funds stood at -24 in July, down from -7, due to a

drop in housing investment and a decrease of consumer spending.

--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$$$,M$J$$$]