Japan bank lending, deposits keep rising in Dec as pandemic strains persist
[TOKYO] Japanese bank lending continued to rise in December to hit a fresh record, data showed on Tuesday, as companies kept piling up cash to weather the fallout from the coronavirus pandemic.
Outstanding loans held by the country's four main categories of banks, including "shinkin" or credit unions, rose 6.2 per cent in December from a year earlier to a record 577.6 trillion yen (S$7.31 trillion), Bank of Japan data showed.
Total deposits at the banks also surged 9.3 per cent to a record 802.9 trillion yen, as some companies parked the money they borrowed in their accounts for the time being, the data showed.
"Some companies were holding back on capital expenditure and cutting fixed costs," which was also behind the increase in deposits, a BOJ official told a briefing.
Aside from lending, commercial banks were using the money from the huge deposits to increase purchases of short-term securities and government bonds, the official said.
The BOJ eased monetary policy twice last year to cushion the economic blow from Covid-19, including by creating a new lending facility aimed at channeling funds to cash-strapped firms via financial institutions.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
While lending by cash-strapped firms has peaked, the government's decision to impose new state of emergency curbs to prevent the spread of the virus has clouded the outlook for the world's third-largest economy.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
S&P Global first-quarter profit beats estimates on strong product demand
Thai banks cut rate for some borrowers after push from PM
Money laundering accused who faces 22 charges to plead guilty on May 14
BNP Paribas beats estimates as lower costs offset trading slump
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover