Outstanding bank lending in Japan stood at a record high of ¥605.8 trillion at the end of 2024, up 4.4% from a year before, according to industry data.
The increase reflected strong corporate demand for working capital amid rising raw materials prices and the yen's weakening, as well as brisk capital investment mainly by large companies. The data, released Friday, covered 110 member banks of the Japanese Bankers Association.
The pace of overall lending growth was faster than the 3.3% recorded at the end of 2023, when the growth of financing demand slowed somewhat after a post-pandemic spike.
Five major banks boosted lending by 6.3% in 2024.
Loans extended by regional and second-tier regional banks rose 3.7% and 2.1%, respectively. Trust banks, whose loan business is shrinking, reduced lending by 4%.
"With interest rates expected to rise in the future, companies may be moving to secure funds while interest rates are low," an association official said.
Deposits excluding checks and bills at the 110 member banks grew 2.4% to ¥933.9 trillion.
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