The Bank of Japan's October DI for lending trends at major banks rose 4 points from the previous survey to positive 3, while corporate funding demand remained positive for the first time in 2 quarters. Funding demand appears to have remained firm even after the September rate hike.
According to the Bank of Japan's October survey of lending trends at major banks, announced on the 22nd, the DI was positive 3, up 4 points from the previous survey. Corporate funding demand therefore turned positive for the first time in 2 quarters.
By company size, the DI for large companies improved to positive 5, while that for both medium-sized and small companies was positive 1. Funding demand appears to have remained firm after the rate hike.
The DI indicating policies for setting interest margins was unchanged at positive 12 across all rating categories. The results suggested that financial institutions are widening their interest margins as the BOJ accelerates its rate hikes.
The survey period was from 9 September to 13 October, and the respondents were banks and shinkin banks nationwide among the 50 institutions with the largest loan balances. At its policy meeting on 18 September, the BOJ raised the policy rate from 1% to 1.25%.