Bank lending in Japan increased by 4.8% year-on-year in March 2026, up from 4.5% in February and marking the fastest pace of growth since April 2021. The figure also surpassed market expectations of a 4.4% rise. Total outstanding loans at major, regional, and shinkin banks climbed to JPY 667.0 trillion.
The expansion was led by major banks, where lending grew 6.3%, followed by regional banks with a 4.3% increase. By contrast, shinkin banks—local cooperative institutions that primarily serve small businesses and communities—registered a more modest 1.4% rise, suggesting softer credit demand in some segments of the economy.
