FX.co ★ Japan Bank Lending Growth Hits Near 5-Year High

Bank lending in Japan increased by 4.5% year-on-year in February 2026, accelerating from a downwardly revised 4.4% in January. This marked the fastest pace of growth since April 2021 and slightly surpassed market expectations of a 4.4% gain. Total outstanding loans at major, regional, and shinkin banks rose to ¥663.8 trillion. Major banks drove the overall expansion with a 5.7% increase, while regional banks recorded a 4.3% rise. Shinkin banks—local cooperative institutions that primarily serve small businesses and local communities—posted a more modest 1.5% increase, indicating softer credit demand in some areas of the economy.