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New bank lobby chief Takeshi Kunibe urged Prime Minister Shinzo Abe to follow through on his pledge to spark private investment through deregulation, a stimulus element the group says is key to boosting anemic loan demand.

“Domestic lending is turning around, but it isn’t strong just yet,” said Kunibe, who on Monday replaced Yasuhiro Sato as chairman of the Japanese Bankers Association. “We hope Abe’s policies will bolster business confidence and encourage companies to increase capital spending.”

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