The rapid expansion in lending to firms is ascribable to the growth in demand, sustained by the need to finance inventories and working capital. The deterioration in credit quality was much less serious than during the recession of the early 1990s, which was not as deep.
Let me also express my compliments to each and every member of our current staff, for so faithfully carrying out the duties entrusted to you. Although consumption still appears to be recovering only modestly, it is judged that the pace of growth in our economy is accelerating, as exports are increasing rapidly and investment is also showing favorable movements.