The balance of loans by banks fell 4.8 percent in June from a year earlier, the 66th straight monthly decline, the Bank of Japan said Tuesday in a preliminary report.

The average daily balance of bank loans came to 402.97 trillion yen, the central bank said.

The margin of decline was bigger than a revised 4.6 percent in May, reflecting continued weak corporate fund demand and reluctance by banks to extend fresh loans due to their efforts to clean up their bad loans.

The data cover city banks, trust banks, regional banks and second-tier regional banks.

The balance of bank loans, including those by "shinkin" credit banks, fell 4.3 percent to a record low of 464.70 trillion yen for the 30th straight monthly fall. The BOJ began compiling statistics in January 2001.

Adjusted for special factors -- loan securitization, exchange-rate fluctuations and allocation of loan-loss reserves -- the loan balance, excluding loans by shinkin banks, fell 2.4 percent to 413.09 trillion yen for the 57th consecutive monthly fall.

Before adjustment for special factors, the loan balance fell 7.5 percent at city banks and trust banks but rose 0.4 percent at regional banks.

The balance fell 5 percent at second-tier regional banks and 0.7 percent at shinkin banks.

The daily balance of real deposits and certificates of deposit at city banks, regional banks and second-tier regional banks rose 0.6 percent to 484.88 trillion yen.

The outstanding balance of commercial paper at the end of June rose 9.3 percent to 24.23 trillion yen, marking a record high for the third straight month.

The balance of lending at foreign banks operating in Japan decreased by 24.3 percent to 7.05 trillion yen.