2025.08.0723:57:26UTC+00Japan Bank Lending Growth Beats Expectations

In July 2025, Japan experienced a 3.2% increase in bank lending compared to the previous year, surpassing the forecasted 2.7% and a revised figure of 2.7% from June. The aggregate outstanding loans from major, regional, and shinkin banks reached ¥644.4 trillion. Regional banks spearheaded this growth with a 3.8% increase, while major banks posted a solid 3.2% rise. Shinkin banks—the local cooperative institutions that primarily support small businesses and communities—recorded a more modest increase of 1.3%, suggesting a reduced credit demand in certain areas of the economy.