Demand for funds from companies has weakened over the past three months, reflecting the economic recession, a Bank of Japan survey on banks showed Wednesday.
According to the January survey of senior loan officers at major banks, the diffusion index of fund demand dropped 4 points from the previous survey in October to minus 25.
The index is calculated by subtracting the percentage of respondents who feel that demand for loans is falling from those who believe it is rising.
The DI for large companies was at minus 9, better than the minus 18 reading in October. Large companies are defined as those with capital of 1 billion yen or more with staff of 300 or more.
The categorical improvement apparently shows that more large companies are seeking bank loans because they are having difficulty raising funds through bonds.
The DI changed little among midsize and small firms.
A BOJ official, commenting on how the DI for all companies was down but had risen for large companies, said, "The respondents probably felt that compared to demand from local governments and individuals, fund demand has worsened among companies in general."
Meanwhile, the DI for the lending stance of banks dropped 6 points from 12 in October to 6 for large companies, while that for smaller firms was hardly changed.