国际英语新闻：Japan's bank lending declines for 10th straight month in September

TOKYO, Oct. 13 (Xinhua) -- The overall level of bank lending in Japan fell 1.8 percent from a year earlier in September, marking the 10th straight month of decline, the Bank of Japan (BOJ) said in a report on Wednesday.

According to the central bank, the level of outstanding loans stood at 394.2 trillion yen (4.81 trillion U.S. dollars) in the recording month, following an unrevised 2.0 decline in August.

Bank lending, including trusts also declined 1.8 percent on year, standing at 456.8 trillion yen (5.57 trillion U.S. dollars) following the 1.9 percent decline in the previous month, the report said.

According to the BOJ, adjusted bank lending fell 1.6 percent on year after falling an annual 1.7 percent a month earlier.

A BOJ official said that weak corporate fund demand continues to be the main cause of the bank lending decline, although the central bank's latest economic report predicts conditions will improve.

"Signs of a pick up in business fixed investment are expected to gradually become more evident as the improvement in corporate profits continues," The BOJ said in its latest monthly economic report for October.

"However, with firms' persistent sense of excess capital stock, the pace of improvement in business fixed investment is likely to remain moderate for the time being," it added.

Separately the BOJ said Wednesday that M2 money stock collected an annual 2.8 percent to 778.9 trillion yen (9.51 trillion U.S. dollars) in September, unchanged from the rate of gain in August.

The balance of M2 includes currency in circulation and deposits, but excludes those held at Japan Post Bank.

M3 money stock was up 2.1 percent on year to 1,079.1 trillion yen (13.18 trillion U.S. dollars) after rising by the same rate in the previous month, the BOJ report said.

The balance of M3 includes currency in circulation, deposit money and so-called "quasi" money and CDs.

Japan's money supply or money stock, refers to the total amount of money available in the nation's economy at a particular point in time and is usually defined as currency in circulation and demand deposits (depositors' easily-accessed assets on the books of financial institutions).

Leading economists are quick to note that there is a direct relation in Japan between long-term price inflation and money- supply growth, at least for rapid increases in the amount of money in the economy.