Last month's loan balances of banks and credit unions were over 578 trillion yen, up from the previous month for the first time in four months.
The balance of local banks, which often lend to small and medium-sized enterprises, has increased, and the impact of the new coronavirus has been prolonged, and the level has remained high.
According to the "Trends in Lending and Deposits" released by the Bank of Japan, the balance of loans to companies and individuals by banks and credit unions nationwide averaged 578,49.6 billion yen over the past month.
It increased by more than 380 billion yen from the previous month and increased for the first time in 4 months.
This was due to an increase in the loan balance of regional banks, which often lend to small and medium-sized enterprises, and the loan balance of large banks, which mainly lend to large companies, decreased slightly.
Many large companies have recovered their business performance in the manufacturing industry against the background of strong overseas demand, and there are movements to repay their debts, while small and medium-sized companies are facing a prolonged impact of the new coronavirus. The balance continues to be high due to borrowing of working capital.
The Bank of Japan said, "Compared to last year when lending surged due to the impact of the new coronavirus, the demand for funds from companies has calmed down. The loan balance of the bank is expected to remain at a high level. "