Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Banking

Japan bank deposits rise at record pace as firms, households hoard cash

2021 02 08T011836Z 1 LYNXMPEH1701Z RTROPTP 4 HEALTH CORONAVIRUS JAPAN - Global Banking | Finance

By Leika Kihara

TOKYO (Reuters) – Japanese bank deposits surged at a record annual pace in January, data showed on Monday, a sign companies and households were continuing to hoard cash to guard against the prolonged damage from the coronavirus pandemic.

Total deposits at commercial banks rose a record 9.8% 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 piling up money from subsidies and loans they took up as a precaution against the health crisis, while households were holding back on spending due to the third wave of infections, a BOJ official told reporters.

The pace of growth in bank lending slowed, however, as big borrowers have already amassed precautionary loans to weather the hit from the pandemic.

Outstanding loans held by Japan’s four main categories of banks, including “shinkin” or credit unions, rose 6.1% in January from a year earlier to hit a record 578.1 trillion yen, the data showed.

“Some small- and medium-sized firms are borrowing more but there doesn’t appear to be a huge increase in requests for additional loans. Demand for spending on capital expenditure also remains weak,” the official said.

The BOJ eased monetary policy twice last year to cushion the economic blow from COVID-19, including by creating a new lending facility aimed at channeling funds to cash-strapped firms via financial institutions.

While lending by cash-strapped firms has peaked, the government’s decision to impose new state of emergency curbs from January to prevent the spread of the virus has clouded the outlook for the world’s third-largest economy.

($1 = 105.4600 yen)

(Reporting by Leika Kihara; Editing Shri Navaratnam)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post