The balance of loans by banks fell 4.6 percent in April from a year earlier, the 64th straight month of decline, the Bank of Japan said Friday in a preliminary report.

The average daily balance of bank loans came to 409.96 trillion yen, the central bank said.

The figures cover banks with nationwide branch networks, known as city banks, as well as trust banks, regional banks and second-tier regional banks.

Adjusted for special factors -- loan securitization, exchange-rate fluctuations and allocation of loan-loss reserves -- the loan balance lost 2.1 percent to 420.55 trillion yen in April, falling for the 55th straight month, the BOJ said.

The contraction began to emerge in 1997 after the collapse of Yamaichi Securities Co. and Hokkaido Takushoku Bank.

On an unadjusted basis, the April loan balance, including the balance of loans by "shinkin" savings and loan banks, dropped 4.2 percent to 472.14 trillion yen, down for the 28th straight month.

The unadjusted balance at city banks and trust banks declined 7.4 percent to 236.16 trillion yen, and that at regional banks rose 1 percent to 132.55 trillion yen.

The balance at second-tier regional banks was down 5.2 percent to 41.26 trillion yen, and that at shinkin banks fell 1.4 percent to 62.18 trillion yen.

The daily balance of real deposits and certificates of deposit at city banks, regional banks and second-tier regional banks fell 0.8 percent in April to 484.53 trillion yen, the BOJ said.

The outstanding balance of commercial paper at the end of April rose 5.5 percent to 22.93 trillion yen.

The balance of lending at foreign banks operating in Japan decreased 26.5 percent to 7.32 trillion yen.