Bank lending is growing faster in the
Tohoku region than in other parts of the country, according to data released
by the Bank of Japan.
At the end of March,
the lending balance in the Tohoku region was 4 percent higher than a year
earlier, against the national average increase of 0.9 percent, the central
bank said Wednesday.
Tohoku
municipalities are increasingly borrowing money to fuel reconstruction following the March 2011 earthquake and tsunami,
said an official at the bank's Sendai branch.
Lending bottomed out
in the wake of the disaster, with demand for funds coming mainly from
municipal governments hit by sluggish
tax revenues. Low interest rates on housing loans are also attracting borrowers.
In Tokyo, corporate
loans related to mergers and acquisitions are also increasing, on the back of
the yen's appreciation.
In the Tohoku
region, deposits have remained at high levels, shored up by insurance payments and donations, with the March-end
balance growing 13 percent from last year, against the national average
increase of 2.2 percent.
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VOCABULARY
1.
Lending -
to let someone borrow money or something that belongs to you for a short
time
2.
Reconstruction
- the work that is done to repair the damage to a city, industry etc,
especially after a war
3.
Consecutive
- consecutive numbers or periods of time follow one after the other without
any interruptions
4.
Sluggish -
moving or reacting more slowly than normal
5.
Appreciation
- a rise in value, especially of land or possessions
6.
Shored - to
help or support something that is likely to fail or is not working well
QUESTIONS FOR DISCUSSION
1.
Discuss the process of bank lending in Japan.
2.
What are the advantages and disadvantages of
bank lending?
3.
How much interest do you think should banks get
from lending?
4.
What will make you borrow money from banks?
5.
Name other lending companies.
