Japan's biggest banks see stable loan demand in Q2 2026

Four banks said that demand from local governments were “substantially stronger.”

Demand for loans from the majority of large Japanese banks remained “about the same” in the second quarter of 2026, according to a survey by the Bank of Japan (BOJ).

Of the 50 banks surveyed, 43 or 86% said that demand from firms stayed about the same during the period, the central bank found. Demand from local governments and households also remained about the same for 45 (90%) of the banks polled.

Four banks (8%) said that demand from firms was “moderately weaker”, whilst 3 (6%) said that demand was “moderately stronger.”

Three banks said that demand from local governments got stronger, with two saying it got “substantially stronger.”

Four banks said that demand from households were "moderately stronger” during the quarter, the BOJ reported.

The fifty largest banks were polled between 9 June and 8 July. The aggregated loan amount held by the banks account for 80% of total loans of all banks in Japan.