The company reported gains from improved private loan demand and a lower loan loss provision.
Banks did not expand their loans because their capital was constrained and loan demand was weak.
That will eventually happen, but the current and near-future weakness of loan demand will delay that rebound.
Loan demand is expanding and it seems that the company has returned to a period of modest growth.
It's just that the banks are struggling with difficult markets and spluttering loan demand in a normal business downturn.
Loan demand was flat or "up slightly" in most places, the Fed said.
But the rapid growth in loan demand from hedge funds has forced brokerages to turn increasingly to their retail customers.
Further, interest rates are not the dilemma, since loan demand is not rising significantly even with rates already historically low.
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If Japan's economic recovery, which still looks strong, continues, growing capital investment could eventually foster a rebound in loan demand.
Today, China Construction Bank Corporation reported a 31 percent increase in profits on higher loan demand and higher interest rates.
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The market has been playing close attention to loan demand in China.
Banking conditions varied, with some districts noting soft or decreased overall loan demand, while credit standards remained tight in most reporting Districts.
The most telling data point, at least as it pertains specifically to monetary conditions, was loan demand, which remained stable or slightly higher.
But pent-up loan demand in an economy that is seeing lower inflation and interest rates may imply a higher growth rate going forward.
However, as the economy regains steam and loan demand increases, those excess reserves will enter the marketplace and increase nominal spending and prices.
Louis Fed, yet they have been criticized for failing to lend those out, given tighter credit markets and lower loan demand amid a slow economy.
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Corporate loan demand is weak and net interest margins are thin.
Japan's biggest bank by assets and market value is keen to expand outside its domestic market, where loan demand is sluggish following two decades of economic stagnation.
In the recession, loan demand from some companies was strong.
But with the Bank rate unlikely or unable to fall further, new home loan demand is shifting back to fixed-rate deals, rather than mortgages which track the Bank rate.
Net interest income is expected to remain flat this year, Chief Financial Officer Marianne Lake said, adding that she expects strong loan demand from businesses and modest demand from consumers this year.
If bank lending is turning down, for example, anecdotal information is needed to help sort out whether the primary cause is reluctance to lend, a reduction in loan demand, or some combination of the two.
Good news for the economy might even translate into good news for savings accounts and other deposits, which have seen interest rates driven down to near zero by weak loan demand and Federal Reserve intervention.
Loan demand from big companies has dropped.
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Japanese financial stocks, as especially the megabanks, have been in a positive feedback loop of balance sheet and income statement translation gains from a weaker yen and the prospect of increased loan volumes and interest earnings from higher domestic loan demand.
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With loan demand from creditworthy borrowers weak during the recession and with banks still suffering from the financial crisis, perverse accounting rules that caused them to lose regulatory capital, and persistent banker bashing from the Administration and Congress, many banks held onto their reserves to cushion further capital losses.
With a demand loan, you recognize each year's forgone interest as a gift at the end of that year. n Even if you intend from the start to begin forgiving a loan annually, show at least some history of repayment first.
Amid strong demand, leveraged loan volume in August handily beat expectations.
Additional concerns are raised over the lack of an industry-wide regulatory body to demand transparency, monitor abusive loan practices, and ensure that financial education of financial products is in place.
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