According to data released by the Bank of Japan, combined average outstanding loans at banks and shinkin banks rose 5.4% in August, maintaining a robust trend even after rate hikes. The data indicate that loan growth is continuing despite the impact of interest-rate fluctuations.
Combined average outstanding loans at banks and shinkin banks grew in the 5% range both month on month and year on year in August, indicating that lending overall remains robust. Even amid interest-rate hikes, demand for corporate and personal loans has provided a degree of support.
Against the backdrop of the BOJ's policy response, the strength of financial institutions' lending base appears to have been reaffirmed, and attention will focus on the interplay between future trends in funding demand and the interest-rate environment.