The Japanese securities lending market, like the country's economy, has seen numerous false dawns. Hopes for a robust revival are entertained mostly out of habit. Yet bankers report an increase in business in recent months, with fees and spreads moving higher.

The Risk Management Association's index showed that at the end of last year $180bn (€139bn) worth of Japanese equities were available for lending and 12% of these were on loan. This puts Japan third in the global league of lendable assets, behind the US and the UK, and the market has been growing in recent years, albeit slowly.