People wearing protective masks to help curb the spread of the coronavirus walk along a pedestrian crossing on June 24, 2021, in Tokyo. (AP Photo/Eugene Hoshiko)

       TOKYO (Kyodo) -- Assets held by Japanese households rose 7.1 percent from a year earlier to a record 1,946 trillion yen ($17 trillion) at the end of March as consumers reduced spending amid the pandemic and stock prices recovered, the Bank of Japan said Friday.

       Cash and deposits expanded to 1,056 trillion yen, up 5.5 percent, or 54.3 of total household assets, marking the largest on a fiscal year-end basis, according to the BOJ.

       The negative impact of the pandemic lingered as people continued to refrain from going out, reducing spending. The rise in cash and deposits was also helped in part by the government's distribution of 100,000 yen to all people in the country last year to support households.

       Economists say people would step up their spending once the pandemic subsides, supporting the economy whose recovery is still fragile as the country struggles to rein in coronavirus infections with its relatively slow rollout of vaccines.

       Assets held in securities surged 32.1 percent to 195 trillion yen after stock prices rebounded after suffering sharp falls a year earlier at the onset of the pandemic.

       The value of loans extended by financial institutions to nonfinancial firms rose 7.4 percent to 354 trillion yen, a record-high on a fiscal year-end basis.

       The BOJ has been extending support for companies coping with the pandemic fallout, in tandem with the government.

       Cash and deposits held by nonfinancial firms rose 15.7 percent to a record 320 trillion yen, or about a quarter of total assets, reflecting their cautious stance on spending. Total assets increased 14.2 percent to a record 1,247 trillion yen.

       The BOJ held 542 trillion yen worth of Japanese government bonds, owning 44.5 percent of total state debt that stood at 1,218 trillion yen.

       Overseas investors also increased their holdings, up 10.4 percent to 160 trillion yen, accounting for 13.2 percent.

       The BOJ has been purchasing Japanese government bonds to keep borrowing costs low.

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