The average daily balance of bank lending rose 1.5 percent in October from a year earlier, the slowest growth since April 2008, as companies remained less aggressive in borrowing money for capital investment and operations, the Bank of Japan said Tuesday.
The loan balance rose for the 45th straight month to ¥402.58 trillion, but the pace of increase slowed for the 10th straight month.
After adjustment for special factors — loan securitization, exchange rate fluctuations and the allocation of loan-loss reserves — the loan balance rose 1.9 percent, also the slowest pace of growth since April last year.
The balance excludes loans by small cooperative financial institutions known as "shinkin."
Meanwhile, the balance of deposits and certificates of deposit rose 3.5 percent to ¥526.76 trillion, a steeper gain compared with a 3.0 percent increase the previous month.
Lending on the part of shinkin banks increased 1.1 percent to ¥63.46 trillion.
The combined balance of bank loans, including those provided by shinkin, climbed 1.5 percent to ¥466.04 trillion.
The lending balance at foreign banks operating in Japan declined 40.3 percent to ¥4.36 trillion.