Japanese bank lending edged up 0.1 percent in October from a year earlier to 394.57 trillion yen (5. 07 trillion U.S. dollars), the Bank of Japan (BOJ) said in a report on Wednesday.
The rise in the reporting period follows a 0.3 percent fall booked in September and marks the first time in 23 months that lending has increased.
The BOJ's figures revealed that combined loans held by the country's four main categories of banks, including "shinkin" or credit unions, was flat on year standing at 456.97 trillion yen, following a fall of 0.3 percent booked a month earlier.
Lending from foreign banks retreated 35.9 percent to 2.47 billion yen after dropping 34.6 percent on year in September, the central bank said. (1 U.S. dollar is equivalent to 77.6 yen)