62% of Japan Loan Rate  Below 1%
62% of Japan Loan Rate  Below 1%

62% of Japan Loan Rate Below 1%

62% of Japan Loan Rate Below 1%

After two years of the Bank of Japan guiding key interest rates into negative territory, lenders here have seen loan rates slide toward zero, pushing financial institutions to reassess their business models, Nikkei reported. Japanese banks had 471 trillion yen ($4.42 trillion) in loans outstanding at the end of 2017, up 6% from two years earlier. The BoJ imposed negative rates in February 2016 on certain deposits held at the central bank, aiming to spur lending and encourage businesses to borrow more money for expansion and investment. But roughly 290 trillion yen of those loans—62% of the total—carry interest rates of less than 1%. Only 10% have rates of 2% or more, down 5 percentage points from the end of 2015, as businesses and individual borrowers have refinanced to lock in more preferable terms. Real estate financing has played a larger role in the increase in lending than loans to businesses. Over half of listed companies are effectively debt-free, and “demand for financing is not particularly strong,” according to a senior official at one of Japan’s top banks. 


Short URL : https://goo.gl/c2841L
  1. https://goo.gl/4PeDfm
  • https://goo.gl/CPBqoi
  • https://goo.gl/GArdU1
  • https://goo.gl/TSrTwz
  • https://goo.gl/zUhqQn

You can also read ...

China Warned of Ballooning SOEs
Former chief of the World Bank Robert Zoellick cautioned China...
Business confidence fell to its lowest level since August 2013 and around 7% of companies expected a contraction.
According to data from the International Monetary Fund in...
Shrinking unemployment in the US, Japan and the eurozone finally forces companies  to lift wages to retain and attract staff.
Workers in the world's richest countries are getting their...
New Zealand Q2 GDP Growth Picking Up
New Zealand’s economic growth is expected to have accelerated...
Saudi Sovereign Fund Secures $11 Billion Loan
Saudi Arabia's sovereign wealth fund said Monday it had...
Lira Eases Against Dollar
Turkey’s lira weakened against the dollar on Monday as...
By 2025 more than half of all current workplace tasks  will be performed by machines.
Robots will handle 52% of current work tasks by 2025, almost...
Myanmar Businesses Want Lower Taxes
Myanmar businesses are urging the government to lower the...

Add new comment

Read our comment policy before posting your viewpoints