Japan Bank Lending Growth Hits Near 5-Year High

Japan’s bank lending rose 4.5% year-on-year in January 2026, up from a 4.4% gain in December and in line with market expectations, marking the fastest pace since April 2021. Total outstanding loans across major, regional, and shinkin banks reached ¥663.8 trillion. Major banks led the expansion with a 5.8% increase, followed by regional banks at 4.1%. Shinkin banks, local cooperative lenders serving small businesses and communities, saw a more modest 1.4% rise, reflecting softer credit demand in parts of the economy.

Japan’s bank lending increased 4.4% in December 2025, accelerating from a downwardly revised 4.1% growth in November and exceeding market expectations of a 4.1% gain. It marked the fastest growth since April 2021. Total outstanding loans across major, regional, and shinkin banks reached ¥660.6 trillion. Major banks led the expansion with a 5.7% increase, followed by regional banks at 4.1%. Shinkin banks, local cooperative lenders serving small businesses and communities, recorded a more modest 1.4% rise, indicating softer credit demand in certain parts of the economy.

Japan’s bank lending rose 4.2% in November 2025, accelerating slightly from a 4.1% gain in October and exceeding market expectations for a 4% gain. That was also the fastest growth since April 2021. Total outstanding loans across major, regional, and shinkin banks reached ¥652.5 trillion. Major banks led the expansion with a 5% increase, followed by regional banks at 4.1%. Shinkin banks, local cooperative lenders serving small businesses and communities, recorded a more modest 1.5% rise, indicating softer credit demand in certain parts of the economy.