Japanese total bank loan growth rose to 2.8% YoY in June, up from 2.4% in May and above expectations of 2.3% YoY, continuing a modest upward trend led by regional institutions.

• Major bank loan growth picked up to 2.2% YoY in June from 1.3% in May.
• Regional banks maintained strong lending growth at 3.7% YoY, with Regional Banks I at 3.9% and Regional Banks II at 3.0%.
• Shinkin bank lending edged up to 1.3% YoY in June from 1.2% in May.
• Foreign bank loans surged 26.2% YoY in June, accelerating from 25.7% YoY in May.
• The total loan balance across major, regional, and Shinkin banks stood at ¥639.7 trillion in June.
• Total deposit growth was 0.8% YoY in June, slightly ahead of 0.7% YoY in May.