Published monthly by Bank of Japan. Updated to the month of February 2017 (published on March 8th, 2017).
Recent data trend:
Bank lending in Japan grew by 2.8% year on year in February 2017, the highest growth attained since June 2009. Deposits to all banks also increased by 4.4% year on year.
The bank lending growth in Japan experienced a slow down between 2015 to 2016, from the peak of 2.7% YoY in August 2015 to 2.0% YoY in August 2016. However, there has been a moderate re-acceleration in the second half of 2016. A breakdown by borrowers, which become available with one month lag, shows that it is probably fixed investment related loans, most notably housing loans to households, that are boosting the lending growth in the second half of 2016. The negative interest rate policy introduced by the BoJ in January 2016 has not been particularly popular, but it must be one of the factors behind the re-acceleration in the bank lending growth in the second half of 2016.
Brief overview of "Bank Lending"
In Japan, bank loans are still the dominant form of credit provision. At the end of 2012, loans outstanding made by private financial institutions totaled 698.9 trillion yen while corporate bonds including CPs totaled mere 93.4 trillion yen. “Bank lending” statistics, released by the Bank of Japan, surveys major banks, regional banks and Shinkin banks and together covers about 2/3 of the total private loans made in Japan. Financial institutions not covered by this statistics include agricultural corporatives, credit unions and foreign banks. Bank lending statistics also includes surveys of deposits. At the end of 2012, total deposits surpassed the total lending by 173 trillion yen and the financial market tends to view this gap as a measure for the demands for JGBs by banks.
Bank lending growth YoY%
Bank lending by Borrowers
Note: In this chart, "Bank lending" refers to simple addition of "Domestically Licensed Banks" and "Shinkin Banks" as defined by the BoJ. For more details, please see our brief overview below.
Brief overview of "Bank lending by Borrowers"
The original data for "Bank lending by borrowers" statistics is published by the Bank of Japan as "Deposits, Vault Cash, and Loans and Bills Discounted". The dataset is released with 4-6 weeks lag. The data are compiled at the end of the month basis. For more details please see the BoJ statistics page here.
Source: BoJ, JMA
The Next Release Date: April 12th, 2017.