Lending by Japanese banks fell 4.6 percent in February from a year earlier, down for the 50th month in a row, the Bank of Japan said Friday.
The average daily lending balance for the month came to 437.32 trillion yen, the central bank said in a preliminary report.
The drop reflects weak fund demand by businesses for new investment amid the prolonged economic slump, as well as banks' reluctance to lend as they are still burdened with bad loans.