Bank lending in Japan increased 5.4% year-on-year in August 2026, slightly below market expectations of a 5.5% rise and matching the pace seen in July. The average balance of outstanding loans at major, regional, and shinkin banks reached JPY 680.3 trillion, up from JPY 679.2 trillion in the previous month.
Combined lending by major and regional banks grew 5.8% year-on-year, easing from 5.9% in July. Within that total, lending by major banks maintained a solid 7.9% growth rate, unchanged from the prior month, while lending by regional banks slowed to 4.1% from 4.2%.
Among regional lenders, growth at regional banks I edged up to 4.6% from 4.5%, whereas lending growth at regional banks II moderated to 2.0% from 2.4%. Shinkin banks saw lending growth accelerate to 2.0% from 1.9%, its fastest pace since early 2023. Foreign banks also continued to post robust loan growth of 25.6%, though this represented a deceleration from 28.3% in July.
