The average daily balance of bank lending in June fell 2.1 percent from a year earlier to ¥394.43 trillion, marking the seventh straight monthly decline and signaling continued weak corporate appetite for operating money and capital investment funds, the Bank of Japan said Thursday.
After adjustment for special factors — loan securitization, exchange-rate fluctuations and the allocation of loan-loss reserves — the loan balance dropped 1.9 percent, also the seventh consecutive monthly fall, the BOJ said in a preliminary report.
Including loans by "shinkin" small cooperative banks, the lending balance totaled ¥457.03 trillion before adjustment, down 2.0 percent for the seventh straight monthly drop. Lending by large city banks and trust banks dropped 4.1 percent to ¥201.73 trillion.