Japanese banks see record demand for corporate loans during pandemic - BOJ survey

Credit: REUTERS/TORU HANAI

Major Japanese banks saw record demand for the corporate loans they offer in the three months to July, a central bank survey showed on Friday, as companies hit by the coronavirus pandemic scrambled to fill cash shortfalls.

By contrast, an index gauging households' demand for loans at commercial banks slumped to a record low of -24 from -7 three months ago, as lockdown measures keeping citizens at home hit consumption, according to the survey.

The government has deployed massive stimulus packages to cushion the blow of the coronavirus on the economy, while the BOJ has eased monetary policy twice this year to pump money into cash-strapped small firms.

(Reporting by Takahiko Wada and Leika Kihara; Editing by Ana Nicolaci da Costa)

((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters Messaging: leika.kihara.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More