(RTTNews) - Wednesday, a survey report from the Bank of Japan showed that Japanese companies remained cautious with regards to borrowing, while banks' credit standards remained more or less unchanged. The Bank of Japan's quarterly Senior Loan Officer Opinion Survey for October showed that the index of corporate demand for loans stood at minus 14, unchanged from July's survey result. Demand for loans among large firms was unchanged at minus 10, while demand among medium-sized firms improved to minus 8 from minus 10 and that among small firms improved to minus 10 from minus 15.

The latest results reinforce the view that Japanese companies remain cautious with regards to investment, with firms still reeling from the financial crisis. Although industrial activity has picked up in recent months, it is widely attributed to temporary factors such as the inventory cycle and the various fiscal measures currently in effect at home and abroad. With the effects of these temporary measures fading eventually, companies are more concerned about trimming down excess capacity than undertaking new investment.

October's survey also revealed that demand for housing loans worsened, with the diffusion index at minus 15 compared to minus 12 in the previous survey. On the other hand, demand for consumer loans improved to minus 9 from minus 15. Survey participants also expect demand for loans from firms in the next three months to improve modestly, with the respective index at minus 1, up from minus 3 in the June survey.

Furthermore, the index gauging banks' credit standards for approving applications from large firms rose to 6 from 5, while that among mid-sized firms worsened to 7 from 11 and that among small firms stood at 20, down from 22.