Japan Bank Lending Growth Holds Steady in August

Japan’s bank lending rose by 5.4% year-on-year in August 2026, falling short of market expectations for a 5.5% gain and unchanged from the previous month. Outstanding loans at major, regional, and shinkin banks averaged JPY 680.3 trillion, up from JPY 679.2 trillion in July. Lending at major and regional banks increased 5.8%, easing from 5.9% in July, with major-bank lending growth steady at 7.9%, while regional-bank lending slowed to 4.1% from 4.2%. Within regional banks, lending growth accelerated to 4.6% for regional banks I from 4.5%, while growth at regional banks II eased to 2.0% from 2.4%. Meanwhile, lending by shinkin banks accelerated to 2.0% from 1.9%, marking its strongest growth since early 2023. Foreign-bank lending growth also remained strong at 25.6%, though easing from 28.3% in July.

Japan’s bank lending rose 5.4% year-on-year in July 2026, slowing from a five-year high of 5.7% increase in the previous month. Outstanding loans at major, regional, and shinkin banks averaged JPY 679.2 trillion, up from JPY 679.0 trillion in June. Lending at major and regional banks increased 5.9%, easing from 6.2% in June, with major-bank lending growth slowing to 8.0% from 8.6%, while regional-bank lending remained unchanged at 4.2%. Within regional banks, lending growth was steady at 4.6% for regional banks I and 2.4% for regional banks II. Meanwhile, lending by shinkin banks accelerated to 1.9% from 1.7%, marking the strongest growth since early 2023.

Japan’s bank lending rose 5.7% year-on-year in June 2026, falling slightly short of market forecasts for a 5.8% increase and matching May’s pace. The reading remained the strongest since March 2021, with outstanding loans at major, regional, and shinkin banks reaching JPY 676.1 trillion, up from JPY 670.8 trillion in May. Lending at major and regional banks accelerated to 6.3%, marking the fastest growth since August 2020, driven by stronger credit demand for mergers and acquisitions, real estate investment, and the ongoing economic recovery. Outstanding loans at major banks rose 8.7% from 8.6%, while regional banks saw lending growth edge up to 4.3% from 4.2%. The Bank of Japan said the solid lending growth reinforced its view that financial conditions remain accommodative despite recent interest rate hikes. Meanwhile, lending by shinkin banks, which primarily serve small businesses and local communities, was unchanged at 1.7% year-on-year.