Mizuho sees Abenomics producing $10 bln boost to its lending
TOKYO, Sept 10
TOKYO, Sept 10 (Reuters) - Mizuho Financial Group Inc said the impact of Japanese Prime Minister Shinzo Abe's economic policies has led it to lift its target for total domestic lending in March 2016 by $10 billion.
In material presented at an investor conference on Tuesday, Mizuho said it projects that Abenomics will result in a boost of about 1 trillion yen ($10 billion) in its domestic lending over the next two and a half years.
Mizuho, Japan's second-largest lender by assets, had total domestic loans of 53.7 trillion yen at the end of March this year. It originally planned to increase that by up to 3 trillion yen as of March 2016, but now will aim to raise lending by 4 trillion yen.
Citing a recent recovery in corporate capital investment, Mizuho said it expects loan demand to grow stronger than it had previously projected.
A slew of recent economic data suggest Japan's economic recovery is on firmer footing, including upwardly-revised April-June gross domestic product figures.
Bank lending has been closely watched as a gauge of confidence of businesses and households about their outlook to borrow and spend on upgrading factories and buying homes.
A policy mix of monetary, fiscal and structural reform measures by Abe is designed to lift Japan's economy from its 15-year-old deflationary funk.
Mizuho and other Japanese banks have long been suffering from weak loan demand at home as business and households remain cautious about spending and borrowing amid weak growth prospects.
Bank of Japan data shows that major banks are seeing a pickup in lending this year. But growth in loans remains relatively small and active borrowers are limited to some particular industries such as power utilities, which are struggling with high fuel costs in the absence of nuclear power generation.
($1 = 99.5750 Japanese yen) (Reporting by Taiga Uranaka; Editing by Richard Borsuk)
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