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Corporate Loan Demand Weakens In Japan

A Bank of Japan quarterly survey showed Monday that corporate demand for bank loans has declined for the first time in three quarters.

The deterioration mainly came from  from slower growth in loans to small and midsize companies, mostly in the nonmanufacturing sector, according to the survey conducted from March 11 to April 10.

The diffusion index (DI), the percentage of banks seeing stronger loan demand minus the percentage of those seeing weaker demand, for changes in corporate loan demand over the past three months stood at plus 5, down three points from the previous January survey, the Central Bank said.

The DI for corporate loan demand over the next three months stood at plus 6, demonstrating that corporate fund demand remains on an upward trend. The DI on loan demand from individuals stood at plus 20, the highest level since the statistics started in April 2000.

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