TOKYO (AFX-ASIA) - The Bank of Japan said the decline in bank lending slowed during May, though this may have been due to distortions in the previous year's figures. Bank lending in May fell 4.5 pct year-on-year after falling a revised 4.7 pct in April, while outstanding balances in the month stayed under 500 trln yen for the second straight month. "City banks, regional banks and second-tier regional banks all showed a slower decline in bank lending," an official said. "We suppose April lending may have been distorted after government guarantees on loans to small companies were terminated the previous year."