Lending by Japanese banks fell 4.5 percent in August from a year earlier, marking the 56th consecutive month of decline, the Bank of Japan said Monday.
The average daily lending balance for the reporting month was 421.7 trillion yen, the central bank said in a preliminary report.
Analysts attributed the decline to continuing slack demand from businesses for funds for new capital investment amid the prolonged economic slump. Banks also remained reluctant to extend new loans because of the need to book large loan-loss charges, they added.
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