Japan’s bank lending rose 4.5% year-on-year in January 2026, up from a 4.4% gain in December and in line with market expectations, marking the fastest pace since April 2021. Total outstanding loans across major, regional, and shinkin banks reached JPY 663.8 trillion. Major banks led the expansion with a 5.8% increase, followed by regional banks at 4.1%. Shinkin banks, local cooperative lenders serving small businesses and communities, saw a more modest 1.4% rise, reflecting softer credit demand in parts of the economy.