This report provides a detailed analysis of the latest trends in loans and deposits of domestic financial institutions based on the loan and deposit statistics for June 2025 published by the Bank of Japan.
Overview of Lending Trends
Overall Lending Trends
- Publication of domestic bank loan balances and year-on-year growth rates for June 2025
- Detailed data by type of institution including city banks, regional banks, and second-tier regional banks
- Clear breakdown of corporate and personal loans
- Monthly data captures short-term changes in funding demand
Characteristics of Lending by Institution Type
- City banks maintain steady growth centered on loans to large corporations
- Regional banks show consistent increases in loans to local SMEs
- Credit unions and credit associations support small businesses through community-based finance
- Analysis of international fund flows through lending trends at foreign bank branches in Japan
Analysis of Deposit Trends
Trends by Deposit Type
- Balance trends by type including demand deposits, time deposits, and current deposits
- Detailed analysis of changes in the composition of personal and corporate deposits
- Confirmation of continued shift toward liquid deposits
- Examination of the impact of interest rate environment on deposit trends
Loan-to-Deposit Ratio and Excess Funds
- Analysis of loan-to-deposit ratio trends (loans ÷ deposits) by institution type
- Indication of excess deposits and challenges in fund management
- Verification of relationship with BOJ current account balance trends
- Evaluation of impact on financial institution profitability
Sector-Specific Funding Demand
Corporate Sector Funding Demand
- Detailed analysis of lending trends by manufacturing and non-manufacturing sectors
- Separate understanding of demand for capital investment funds and working capital
- Clarification of differences in borrowing trends between large companies and SMEs
- Assessment of strength of funding demand by industry
Personal Sector Borrowing Trends
- Trends in new mortgage executions and balances
- Usage of consumer loans and card loans
- Impact of interest rate changes on personal borrowing behavior
- Analysis of changes in borrowing patterns by generation
Relationship with Monetary Policy
Impact of BOJ Monetary Policy
- Evaluation of the impact of monetary easing policy on loan and deposit trends
- Monitoring market trends after the lifting of negative interest rate policy
- Verification of effects and challenges of quantitative and qualitative monetary easing
- Consideration of potential impacts of future policy changes
Financial System Stability
- Monitoring loan quality and non-performing loan ratio trends
- Analysis of relationships with financial institution soundness indicators
- Management challenges and countermeasures for regional financial institutions
- Evaluation from a macroprudential policy perspective
The article demonstrates that loan and deposit trends are important indicators reflecting the current state of Japan's money flow and financial intermediation functions, and are essential for measuring the effectiveness of monetary policy and making judgments about future policy operations.