FX.co ★ Japan Bank Lending Growth Stays at Over 5-Year High

Japan’s bank lending increased 5.7% year-on-year in June 2026, slightly below market expectations for a 5.8% rise and matching the growth rate recorded in May. This marked the strongest pace of expansion since March 2021, with outstanding loans at major, regional, and shinkin banks climbing to JPY 676.1 trillion, up from JPY 670.8 trillion a month earlier.

At major and regional banks, lending growth quickened to 6.3% from 6.2%, supported by stronger credit expansion at major banks, where outstanding loans rose 8.7% year-on-year, compared with 8.6% previously. Regional banks also saw a modest acceleration, with overall lending growth edging up to 4.3% from 4.2%. Within that segment, Regional Banks I strengthened to 4.7% from 4.6%, while Regional Banks II remained steady at 2.4%.

In contrast, lending by shinkin banks—institutions that mainly serve small businesses and local communities—was unchanged at 1.7% year-on-year.