Japanese bank lending rose +3.6% YoY in August 2025 (vs +3.2% in July), while deposit growth slowed to +0.6% YoY, highlighting continued loan expansion outpacing funding growth.

• Major bank loans increased +3.8% YoY in August (vs +3.1% in July), the fastest since early 2025.
• Regional banks grew lending +4.0% YoY, with Regional Banks I at +4.1% and Regional Banks II at +3.5%.
• Shinkin banks’ loan growth held steady at +1.3% YoY, consistent with prior months.
• Foreign banks’ lending slowed to +15.6% YoY, down from +21.1% in July, but remained highly elevated.
• Total deposits across city, regional, and Shinkin banks rose just +0.6% YoY in August, down from +0.7% in July.
• City bank deposits were flat at +0.0% YoY, while regional banks grew +1.0% YoY and Shinkin banks contracted -0.2% YoY.