The average daily balance of Japanese bank lending decreased 2.6 percent in June from a year earlier, marking a 90th straight month of year-on-year decline, the Bank of Japan said Friday.
The balance of loans at Japanese banks -- city banks with nationwide branch networks, trust banks, regional banks and second-tier regional banks -- stood at 376.12 trillion yen in the month, the BOJ said in a preliminary report.
The 2.6 percent drop was the narrowest margin of decline since the 2.3 percent decrease posted in August 1998. But it is expected to take time before the balance turns upward on a year-on-year basis.
Including the data for "shinkin" savings-and-loan banks, the balance of bank loans fell 2.3 percent to 437.35 trillion, yen posting a 54th consecutive month of decline.
Adjusted for special factors -- loan securitization, exchange-rate fluctuations and the allocation of loan-loss reserves -- the loan balance, excluding loans by shinkin, edged down 0.3 percent to 385.07 trillion yen.
Before adjustment for special factors, the loan balance dropped 5.4 percent at city banks, long-term credit banks and trust banks, but grew 2.3 percent at regional banks, up for the ninth straight month.
The outstanding balance of commercial paper at the end of June increased 7 percent from a year before to 16.06 trillion yen.