FX.co ★ Japan Bank Lending Growth Above Forecasts

In November 2025, Japan saw a 4.2% increase in bank lending, showing a slight acceleration from October's 4.1% rise and surpassing the market's expected 4% increase. This growth marks the highest rate since April 2021. The total outstanding loans from major, regional, and shinkin banks amounted to ¥652.5 trillion. The growth was primarily driven by major banks, which experienced a 5% uptick. Regional banks followed with a 4.1% increase, whereas shinkin banks, which are local cooperative lenders that support small businesses and communities, experienced a modest 1.5% rise. This modest increase suggests a weaker credit demand in specific sectors of the economy.