TOKYO (AFX-ASIA) - The Bank of Japan said the fall in bank lending in May widened for the first time since May 2000, with declines in lending at city and second-tier regional banks accelerating for the first time since March 2001.
A BoJ official said commercial paper purchases reached a record 20.6 trln yen in May, up from 19.86 trln the previous month. "As a trend, investors are shifting towards CPs amid falling interest rates after recent monetary easing," the official said. "It seems companies are shifting to CPs for fund raising, from bank lending or corporate bond issues."
However, he said it is still uncertain that the overall fall in bank lending during May accelerated due to the rise in CP issuances.