Japanese major banks' lending surge 3.4% in April

Borrowings by COVID-hit firms spurred the jump.

Lending by Japan’s major banks grew the fastest in April since the 2009 global financial crisis, spurred by a jump in borrowings by firms battling strains due to the pandemic, reports Reuters.

A breakdown showed lending by major banks jumped 3.4% in April from a year earlier after a 2% increase in March, marking the fastest growth rate since January 2009.

Separate data showed a surge in the number of financial institutions joining the Bank of Japan’s new cheap loan programme, a welcome sign for the central bank’s efforts to pump money to a broader range of affected firms.

Analysts expect lending to rise further as the government has asked commercial banks to offer low-interest loans to tide over the pandemic-driven funding gap at firms.

Here’s more from Reuters.