FX.co ★ Japan Bank Lending Growth Highest Since 2021

Japan’s bank lending grew 5.4% year-on-year in April 2026, beating market expectations of a 4.6% increase and accelerating from a 4.8% rise in March. This was the fastest pace of expansion since March 2021. Total outstanding loans at major, regional, and shinkin banks reached JPY 671 trillion. Major banks drove the overall increase with an 8% gain, followed by a 4.3% rise at regional banks. In contrast, shinkin banks—local cooperative institutions that primarily serve small businesses and communities—recorded a more modest 1.6% increase, highlighting softer credit demand in parts of the economy.