Corporate bankruptcies fell 16.1 percent in January from a year earlier to a total of 1,205, marking the 13th consecutive month of decline, Teikoku Databank Ltd. said Monday.

Combined debts left by the failed companies dropped a sharp 62.8 percent to 453.55 billion yen, falling below 500 billion yen for the second consecutive month, the credit research firm said in a report covering failures involving liabilities of 10 million yen or more.

But behind the lower debt amount was creditor banks' lack of financial strength to let large troubled borrowers go under and dispose of their bad loans, Teikoku Databank said.

"There has still been little progress in solving the problem of large troubled corporate borrowers," it said in a statement.

Teikoku Databank said the slowdown in the number of bankruptcies became significant as public assistance helps keep small and midsize companies from collapsing, while credit transactions dropped and companies avoided risk-taking strategies.

By industry, declines in bankruptcies in the construction industry stood out, dropping 18.7 percent from a year before. By region, declines in the Chubu region, including Nagoya, were significant with a 28.4 percent fall.

In January, there were no listed companies that went under, the first in 13 months.