Japan’s bank lending increased 5.4% year-on-year in August 2026, missing the 5.5% market forecast and matching July’s pace. Average outstanding loans at major, regional and shinkin banks rose to JPY 680.3 trillion from JPY 679.2 trillion in July. Lending at major and regional banks grew 5.8%, down from 5.9%, as regional-bank growth slowed while major-bank growth held steady. Shinkin-bank lending accelerated to 2.0%, its strongest growth since early 2023, while foreign-bank lending remained robust at 25.6% despite easing from July.