Japan Bank Lending Growth Strongest Since 2021
2026-06-07 23:59
By
Joshua Ferrer
1 min. read
Japan’s bank lending rose 5.7% year-on-year in May 2026, exceeding market forecasts for a 5.6% increase and accelerating from a 5.4% gain in the previous month.
The latest figure also marked the fastest growth since March 2021, with the total outstanding loans at major, regional, and shinkin banks reaching JPY 670.8 trillion.
Major banks continued to drive lending growth, with outstanding loans rising 8.7% year-on-year, up from 7.9% in April.
Lending by regional banks also increased 4.3%, slightly faster than 4.2% in the previous month, as Regional Banks I accelerated to 4.7% from 4.5%, while Regional Banks II slowed to 2.4% from 3.0%.
Shinkin banks, which mainly serve small businesses and local communities, also saw lending growth pick up to 1.7% from 1.5%.