FX.co ★ Japan Bank Lending Growth Exceeds Forecast

In September 2025, Japan's bank lending experienced a 3.8% increase, a pace up from the adjusted 3.5% growth noted in August and surpassing market predictions of a 3.7% rise. This marked the most robust growth rate since April 2021. The collective outstanding loans across major, regional, and shinkin banks amounted to ¥647.9 trillion. The major banks led this trend with a 4.4% growth, while regional banks also posted a significant increase of 4%. Shinkin banks, which are local cooperative lenders catering to small businesses and communities, recorded a modest 1.3% uptick, indicating a softer demand for credit in certain segments of the economy.