Key facts
- Major Japanese banks' share of domestic lending rose to 46.8% in August.
- This is the first sustained increase in domestic lending share for these banks since the collapse of Japan's bubble economy.
- The rise is attributed to increased lending margins and financing demand.
Major Japanese banks' share of domestic lending in August marked the first sustained expansion since the collapse of the bubble economy more than three decades ago. The share increased to 46.8% from a low of 45.5% in May 2025. This rebound is attributed to increases in lending margins and financing demand, prompting institutions like MUFG to focus more on domestic operations. The period following the collapse of Japan's economic bubble in the early 1990s saw a significant decline in the domestic lending share of major banks as they expanded overseas.