As a result, credit demand in the private sector has continued to be weak, and thus private banks’ lending has remained sluggish. Meanwhile, issuance of corporate bonds and CP has recently been steady. The year-to-year growth rate of money stock (M2+CDs) has declined to around 3.5 percent mainly due to the weakness in credit demand in the private sector.
In this financial environment, credit conditions have eased somewhat. The following continue to warrant careful monitoring: how actively investors will take risks; how far private banks will ease their lending stance; and how these changes will affect economic activities. BIS Review 112/1999  2