FxNews—In September 2024, the amount of money borrowed in Japan increased slightly by 2.7% compared to last year. This marks a slight decrease in the growth rate from the previous month of August when it was higher at 3%. This is the smallest growth observed since October of the last year.
Detailed Loan Statistics
The total outstanding loans in Japan, which include money lent by central banks, regional banks, and smaller community banks known as “shinkin” banks, reached 624.2 trillion yen.
Among these, the central and regional banks showed more significant growth rates. Specifically, central banks had a growth rate of 2.8%, and regional banks grew by 3.2%, whereas the shrinking banks experienced a modest increase of only 0.6%.
Implications for the Japanese Economy
This trend of slowing loan growth could indicate a cooling off in economic activities or a more cautious approach from lenders and borrowers. The behavior of central and regional banks suggests they remain the backbone of loan distribution, supporting businesses and individuals alike.
On the other hand, the minor increase in loans from “shinkin” banks might reflect a more localized or conservative lending strategy, which could impact smaller communities.