The balance of outstanding loans at the nation's banks dropped 3.8 percent in May from a year earlier for the 41st consecutive month of decline, the Bank of Japan said Friday.
The continued decline in the balance of outstanding loans reflects sluggish demand for operating funds by companies amid the weakening economy.
When compared with the 3.4 percent drop in April, the decrease in May marks the first time in a year that the margin of decline has expanded.