The Bank of Japan began raising interest rates from zero more than a year ago, but tough competition to lend and healthier company balance sheets have made it difficult for commercial banks to pass on rate hikers to borrowers. The bank also said that it would raise its stake in terms of voting rights in Mitsubishi UFJ Lease & Finance to about 26 percent from 18.6 percent on a consolidated basis by buying shares from closely related parties. MUFG is the last of Japan's top three "mega banks" to report its first-half earnings.