Due to the Impact of COVID-19... Japanese Companies Face Record High 'Funding Demand'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japanese companies' demand for funds has surged to an all-time high due to the impact of the novel coronavirus infection (COVID-19), NHK reported on the 17th. In contrast, individual demand for funds recorded an all-time low.

According to the report, the Bank of Japan (BOJ) conducted a one-month survey from the 9th of last month to the 8th of this month on the demand for funds and loan trends of companies and individuals through 50 financial institutions, including major and regional banks. Companies responded whether their demand for funds had 'increased' or 'decreased' compared to before, and the figure is based on the number obtained by subtracting the percentage of those who answered 'decreased' from those who answered 'increased.'

The BOJ stated that the figure from this survey was 59, surpassing the January 2009 response (43), making it the highest since the survey began in 2000. NHK reported, "It shows that the difficulty in securing funds due to the impact of COVID-19 is still ongoing," adding, "Both manufacturing and non-manufacturing sectors have experienced a significant decline in sales."

However, regarding the outlook for the next three months, this figure dropped to 29, and NHK reported that the BOJ views the demand for funds as having temporarily stabilized.

Meanwhile, individual demand for funds such as mortgages was -24, marking the lowest since the survey began, unlike companies. The BOJ explained that due to the economic recession, consumption involving large-scale funds such as housing or automobile purchases appears to have been temporarily halted.

This content was produced with the assistance of AI translation services.