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Zero-interest lending is lesser of two evils for Japan's banks

Punished for depositing at the BOJ, lenders just want safe parking spots

BOJ headquarters in Tokyo

TOKYO -- Japanese banks are jumping at opportunities to extend even interest-free loans, just to avoid taking the hit from negative interest rates on deposits at the central bank.

The money is going to government entities and affiliated borrowers, which are fielding record loan offers as banks rush to put available funds to use. 

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