Total deposits held by Japanese banks stood at 805.6 trillion yen ($7.4 trillion) in February, up a record 10.0% from a year ago following a 9.8% gain in January, Bank of Japan data showed.
"Deposits rose notably among households, likely due to a renewed rise in COVID-19 infections. We're seeing households hold off on spending," a BOJ official told a briefing.
Total bank lending was also up 6.2% in February as sectors hit hard by the pandemic, such as restaurants and hotels, took on additional loans to weather the pain, the data showed.
Japan's economy expanded an annualised 12.7% in the fourth quarter of last year thanks to a rebound in overseas demand that boosted exports.
But many analysts expect the world's third-largest economy to suffer a contraction in the current quarter, as renewed state of emergency curbs rolled out in January hurt consumption.
($1 = 108.3300 yen)
(Reporting by Leika Kihara; Editing by Sam Holmes)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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