Lending by private banks Infection response is also increasing at an average annual rate JBA

Lending by private banks Infection response is increasing at an average annual rate JBA April 9 20:01

Lending at the end of last month by private banks nationwide has only been increasing at the same level as the previous year, despite the need to support corporate financing due to the spread of the new coronavirus infection. As the government and the Bank of Japan launch funding support measures, the focus is on whether lending will increase this month and beyond.

According to the announcement of the Japan Bankers Association, the loan balance at the end of last month to 113 private and large banks and regional banks' companies and individuals nationwide was 512 trillion 772.7 billion yen, up 2.2% from the same time last year Was.

The main factor was an increase in corporate funding demand due to payments at the end of the fiscal year, but the growth rate of lending during this period did not change significantly at around 2% annually.

As the outbreak of the new coronavirus spreads, the government and the BOJ are strengthening funding support for companies whose sales have fallen sharply.

However, support measures through private banks have recently been introduced, and this time it did not lead to a clear increase in lending.

Even after an emergency declaration, financial institutions operate their stores almost as usual.

In the future, not only government-affiliated financial institutions but also private banks will be paying attention if they are willing to lend money to firms with difficult cash flows or flexibly respond to repayment deadlines.