In the foreign exchange market, the yen is currently being traded in the range of 120-122 yen to the U.S. dollar. With regard to corporate finance, private banks continue to be more active in extending loans, mainly to blue-chip companies, while carefully evaluating the credit risks involved. However, the lending attitudes of financial institutions as perceived by small firms are becoming slightly more cautious.
In corporate bonds and CP markets, the fund-raising conditions for firms continue to be generally favorable. On the other hand, credit demand in the private sector is declining faster mainly because firms are decreasing their business fixed investment while continuously reducing their debts. In view of this, private banks’ lending is following a downward trend.