FX.co ★ Japan Bank Lending Growth Tops Forecast

In October 2025, Japan experienced a 4.1% increase in bank lending, up from a 3.8% rise in September, aligning with analysts' expectations and reflecting the fastest growth rate since April 2021. The cumulative loans from major, regional, and shinkin banks reached ¥650.8 trillion. Major banks spearheaded this growth with a 4.9% rise, followed by regional banks at 4.2%. Shinkin banks, which are local cooperative institutions supporting small businesses and local communities, saw a more modest increase of 1.5%, highlighting weaker credit demand in specific sectors of the economy.