FX.co ★ Japan Bank Lending Growth Undershoots Forecasts

Japan’s bank lending rose 5.2% year-on-year in October 2026, matching September’s downwardly revised 5.2% increase but coming in below market expectations of 5.4%. Outstanding loans at major, regional, and shinkin banks averaged JPY 684.01 trillion.

Lending by major and regional banks grew 5.6%, easing slightly from 5.7% in September. Growth in loans by major banks slowed to 7.5% from 7.7%, while lending by regional banks edged down to 3.9% from 4.0%. Within the regional-bank category, loan growth at regional banks I eased to 4.4% from 4.5%, and growth at regional banks II was unchanged at 1.9%. Shinkin-bank lending growth also held steady at 2.0%.

By contrast, foreign-bank lending growth decelerated sharply, dropping to 8.5% in October from 14.5% in September.