Bank lending failed to pick up in November even after machinery orders rose at twice the pace forecast by economists, suggesting companies may continue to shun debt for financing expansion.

Loans excluding trusts climbed 0.7 percent from a year earlier, gaining at the same pace as in the previous two months, the Bank of Japan said Monday. Lending by the 10 so-called city banks, including Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc., contracted 0.8 percent from a year earlier, the eighth straight month of declines.

Monday's figures underscore the difficulties banks face in increasing profits as their clients opt to fund new factories with means other than debt. The 85-member Topix Banks Index has fallen 18 percent this year, the fourth-worst performance among 33 industry groups on the Topix.