Japan’s bank lending rose 5.4% year-on-year in July 2026, slowing from a five-year high of 5.7% increase in the previous month. Outstanding loans at major, regional, and shinkin banks averaged JPY 679.2 trillion, up from JPY 679.0 trillion in June. Lending at major and regional banks increased 5.9%, easing from 6.2% in June, with major-bank lending growth slowing to 8.0% from 8.6%, while regional-bank lending remained unchanged at 4.2%. Within regional banks, lending growth was steady at 4.6% for regional banks I and 2.4% for regional banks II. Meanwhile, lending by shinkin banks accelerated to 1.9% from 1.7%, marking the strongest growth since early 2023.