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Finance

Japan megabanks brace as a resurgent COVID haunts economy

Lenders see opportunities in industrial reorganization and climate change

The average loan rate at Japan's major banks fell from 0.6% in March to 0.3% in May, and stood at 0.4 to 0.5% in July-August.

TOKYO -- Major Japanese banks are bracing for a tough time ahead after dealing with the coronavirus pandemic relatively well in the April-September half.

But they find themselves fighting through headwinds. The economic recovery from a deep slump in April and May has been slower than bankers had hoped. And this problem has been compounded by a fresh wave of coronavirus infections. Meanwhile, interest margins have been further eroded by the government's offer of interest-free loans.

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