Japan Bank Lending Growth Above Forecasts

Japan’s bank lending rose 3.6% in August 2025, accelerating from a 3.2% gain in July and exceeding market expectations for a 3.2% growth. That was also the fastest pace of growth in more than four years. Total outstanding loans across major, regional, and shinkin banks reached ¥646.1 trillion. Regional banks led with a 4% increase, followed by a solid 3.8% gain at major banks. Shinkin banks—local cooperative lenders serving small businesses and communities—saw a more modest 1.3% rise, signaling softer credit demand in some parts of the economy.