Bank lending in Japan rises for the seventh month

Bank lending grew again in April on the back of efforts to rebuild areas ravaged by the earthquake and tsunami of 2011.

The average daily balance of Japanese bank lending grew 0.4% in April year-on-year to US$4.97 trillion for the seventh straight month, said the Bank of Japan.

The bank also said there was a demand for funds for mergers and acquisitions that Japanese banks are pursuing with great energy abroad.

After adjustment for special factors, the loan balance increased by 0.5%. The special factors include loan securitization, exchange rate fluctuations and the allocation of loan-loss reserves.

The loan balance of major commercial banks with nationwide networks and trust banks (before adjustment) dropped 1.3% to US$2.45 trillion, down for the 30th straight month. The loan balance for regional banks rose 2.1% to US$2.51 trillion.