Japanese bank lending rose +3.8% YoY in September 2025 (up from +3.5% in Aug), while deposits grew +0.7% YoY, reflecting continued loan expansion that is outpacing modest deposit growth.

• Total loans: +3.8% YoY in Sep (3.5% in Aug; 3.2% in Jul). This shows a steady upward trend in outstanding lending across the banking system.
• Major banks loans: +4.4% YoY in Sep (rising from 3.7% in Aug and 3.1% in Jul), making them one of the stronger contributors to overall loan growth.
• Regional banks loans: +4.0% YoY in Sep (3.9% in Aug). Breakdown: Regional banks I +4.1%, Regional banks II +3.4%, both posting positive, above-trend growth.
• Shinkin banks loans: +1.3% YoY in Sep (stable vs prior months), indicating much weaker loan growth at shinkin institutions relative to city/regional banks.
• Foreign banks (yen loans in Japan): +26.1% YoY in Sep, after volatility in prior months (15.6% in Aug, 21.1% in Jul), remaining elevated but variable.
• Total deposits: +0.7% YoY in Sep (0.6% in Aug; 0.7% in Jul), showing subdued deposit expansion compared with lending.
• Deposit composition: City banks +0.1% YoY in Sep (essentially flat), total regional banks +1.7%, while shinkin deposits -0.2% YoY (a small contraction), underscoring uneven deposit trends across bank types.