Apr
13
BOJ Squeeze on Bank Lending Profits Puts Focus on Bond Business
By-
First decline in loan balance at large banks in six years
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Corporate bond issuance at record levels in year to March
A year into the Bank of Japan’s monetary policy experiment in negative rates, the nation’s biggest banks are lending less while large corporations push bond funding to record levels, putting a greater focus on their note underwriting business.
Loan balances at Mitsubishi UFJ Financial Group Inc. and its four so-called city bank peers fell by 0.1 percent from a year earlier to 190.5 trillion yen ($1.75 trillion) as of March 31, the first decline in six years, data from the Japanese Bankers Association show. At the same time, the outstanding balance of corporate bonds rose 3.7 percent to 59.4 trillion yen as of end-February, according to the Japan Securities Dealers Association…
BOJ Squeeze on Bank Lending Profits Puts Focus on Bond Business
