In view of this, lending by private banks remains sluggish, declining at around 2 percent year-on-year. Meanwhile, the amount outstanding of corporate bonds issued is slightly above the previous year’s level. The amount outstanding of CP issued continues to be at a high level. Recently, the growth rate of money stock (M2 + CDs) is slightly increasing due to the inflow from postal savings.
As for funding costs for firms, short-term funding rates basically remain flat but long-term funding rates seem to be declining reflecting the developments in market interest rates. In this financial environment, the lending attitude of financial institutions and corporate financing conditions remain easy. However, the effects of the decline in stock prices on the fund-raising conditions of firms need to be carefully monitored.