Japan's corporate loan demand improved in the first quarter as internally generated fund of customers decreased amid rising sales, the latest senior loan officer opinion survey published by the Bank of Japan showed Friday.
The balance of demand for loans from firms rose to 5 in the first quarter from 4 in the preceding quarter. Likewise, household demand increased to 14 from 11.
Loan officers cited the fall in interest rates as another reason for rise in corporate loan demand. The index for corporate loan demand is expected to remain unchanged at 5 in the second quarter.
The survey, however, showed that the index for demand from large firms eased to 4 from 5 in the fourth quarter. The survey was conducted among 50 banks between March 11 and April 10.
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