Nevertheless, a massive reduction in lending did not occur with a slight pickup in stock prices and the decisions on the injection of public funds toward the end of the fiscal year. The amount outstanding of private bank lending, however, decreased substantially after March, partly due to loan write-offs and liquidation.
With respect to corporate financing, a rapid contraction in overall fund-raising by firms did not occur owing partly to the increase in fund-raising in the capital markets by firms with good business performances. However, from a microeconomic perspective, the unbalanced allocation of funds among firms intensified.