Credit demand at most major Japanese financial institutions remained flat in the second quarter of 2026, according to a recent survey conducted by the Bank of Japan (BOJ).
The central bank polled the country’s 50 largest lenders—which together represent roughly 80% of total commercial bank loans in Japan—between June 9 and July 8. Out of the institutions surveyed, 86% (43 banks) reported that corporate borrowing demand was unchanged during the period. Similarly, 90% of lenders (45 banks) noted stable demand from both households and local governments.
Variations in corporate borrowing were modest: four banks reported moderately weaker demand from firms, while three experienced moderately stronger demand.
In other sectors, three institutions saw increased demand from local governments, with two describing the growth as “substantially stronger.” Additionally, four banks noted moderately higher loan demand from households over the quarter.
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