MNI DATA IMPACT: Japan May Loans Post Record High On Covid-19

     TOKYO (MNI) - Strong demand as the coronavirus impact spreads saw loans by

major, regional and 'shinkin' banks rise 4.8% y/y in May, accelerating from a

2.9% gain in April and marking a record high, data released by the Bank of Japan

showed on Monday.

     Loans by city banks also posted a record high of 6.6% y/y in May (vs. +3.4%

in April), while loans by regional banks rose 3.8% y/y in May (vs. +2.9% in

April).

     The BOJ and the government have been facilitating coronavirus-hit company

financing. A BOJ official said credit costs haven't restricted banks' lending

and commercial banks continue to support corporate financing.

     The official, however, said the BOJ continues to monitor whether rising

credit costs will restrict banks' loans.

     The BOJ in March introduced a lending facility to support corporate

financing and the bank has already provided a total of JPY14 trillion to banks.

     The bank official also said that the BOJ hopes a new lending facility

introduced in May will help facilitate smaller firms' financing. The BOJ will

conduct its first operation on June 24.

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