Combined outstanding loans to small and midsize firms from the 15 banks that received public funds in March fell 715 billion yen short of estimates, according to bank reports released Friday.
Increasing loans to small and midsize firms, who have just shouldered the brunt of a recent lending crunch, was a condition for receiving the 7.5 trillion yen capital injection.
Officials at the Financial Reconstruction Commission said the shortfall, as of March 31, emerged after demand for loans fell due to sluggish corporate activity.