Japanese total bank loan growth edged up to 2.4% YoY in May 2025, slightly above 2.3% in April, as regional banks continued to drive credit expansion.

• Major bank loan growth remained subdued at 1.3% YoY, up marginally from 1.2% in April.
• Regional banks saw stable growth at 3.7% YoY, with Regional Banks I rising 3.8% and Regional Banks II up 3.1%.
• Shinkin bank lending held steady at 1.2% YoY for the second straight month.
• Foreign bank loans surged 25.6% YoY in May, accelerating from 21.1% YoY in April.
• The total average loan balance stood at ¥634.8 trillion in May, with major and regional banks accounting for over ¥556.6 trillion.