Japan faces fragile loan demand

Loan demand from Japanese firms worsened significantly from April to July and reached the lowest level since July 2004, according to the Bank of Japan's quarterly opinion survey of senior loan officials.

The survey finds, however, that the Japanese banking sector has not suffered any serious damage from the credit turmoil thus far in terms of tightening credit conditions and banks are still willing to lend.

To read the survey, click here

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