was 1.4 percent, Bloomberg wrote. The cost of insuring the Tokyo -based lenders’ debt has extended declines since last week, when they raised their combined full-year net income target by 23 percent to 2.26 trillion yen . The improvement in asset quality may free up banks to increase the pace of lending growth, supporting an economic revival that’s been driven by Prime Minister Shinzo Abe’s fiscal and monetary stimulus policies, known as Abenomics. “Credit costs and bad-loan ratios are likely to remain at low levels, which is a trend that we’ve never seen before,” said Toyoki Sameshima , a Tokyo -based analyst at BNP Paribas SA . What banks are expected do now is lend to riskier companies. The banks reduced cash set aside for soured loans in the first half, resulting in a 142.4 billion-yen net reversal of credit costs, earnings reports showed last week. For the full year, Mitsubishi UFJ, Japan’s biggest bank, sees credit costs at 20 billion yen and Sumitomo Mitsui , the second largest by market value, targets 70 billion yen . Mizuho projects they will be reversed by 25 billion yen . If achieved, the combined amount would be the lowest since the year ended March 2006 . The drop “can be explained by upgrades of our clients’ loan ratings”, Mitsubishi UFJ President Nobuyuki Hirano said at a Nov. 14 briefing.