TOKYO (Reuters) – Japanese bank deposits went out at a higher annual rate in January, data on Monday showed a sign that companies and families were continuing to raise money to protect against prolonged damage from the coronavirus pandemic .
Total deposits at commercial banks rose 9.8% higher in January from a year earlier to hit 806.2 trillion yen ($ 7.6 trillion), accelerating from a 9.3% gain in December, according to data released by the Bank of Japan .
Companies were collecting money from subsidies and loans they took as a warning against a health crisis, while families held back on spending due to the third wave of diseases, a BOJ official told reporters.
The pace of growth in bank lending has slowed, however, as large lenders have already accumulated cautious lending to overcome the pandemic.
Outstanding loans by Japan’s four main banks, including shinkin or credit unions, rose 6.1% in January from a year earlier to earn the highest 578.1 trillion yen, the data showed.
“Some SMEs are borrowing more but there does not appear to be a significant increase in demand for additional loans. Demand for capital expenditure remains weak, ”said the official.
The BOJ relaxed monetary policy twice last year to reduce the economic impact of COVID-19, including the creation of a new lending facility aimed at investing money with cash-strapped companies through financial institutions. .
While loans to money laundering companies have been at an all-time high, the government’s decision to suspend emergency loops from January to stop the spread of the virus is on the horizon for the world’s third-largest economy reduce the world.
($ 1 = 105.4600 yen)
Reciting with Leika Kihara; Editing Shri Navaratnam