Japanese total bank loan growth rose to 3.2% YoY (vs 2.7% YoY expected) in July, up from a revised 2.7% in June, driven by continued strength in regional bank lending.

• Major bank loan growth accelerated to 3.2% YoY in July from 2.1% in June.
• Regional banks grew loans by 3.8% YoY, with Regional Banks I at 4.0% and Regional Banks II at 3.2%.
• Shinkin bank lending was steady at 1.3% YoY in July.
• Foreign bank loans rose 21.1% YoY in July, slowing from 26.2% in June.
• Total deposit growth across city, regional, and Shinkin banks was flat at 0.7% YoY in July, with regional banks at 1.2% and city banks at 0.6%.