Japan’s bank lending increased 4.4% in December 2025, accelerating from a downwardly revised 4.1% growth in November and exceeding market expectations of a 4.1% gain. It marked the fastest growth since April 2021. Total outstanding loans across major, regional, and shinkin banks reached JPY 660.6 trillion. Major banks led the expansion with a 5.7% increase, followed by regional banks at 4.1%. Shinkin banks, local cooperative lenders serving small businesses and communities, recorded a more modest 1.4% rise, indicating softer credit demand in certain parts of the economy.