Bank of Japan publishes January 2026 senior loan officer survey showing loan demand and credit standards largely unchanged at major banks

The Bank of Japan published the January 2026 Senior Loan Officer Opinion Survey on Bank Lending Practices at large Japanese banks, indicating broadly stable loan demand and lending conditions over the past three months. The survey covered 50 banks and was conducted from December 9, 2025 to January 13, 2026. Overall loan demand was reported as “about the same” by 86% of respondents, with 14% reporting stronger demand. Demand from firms across all industries was similarly stable, with 86% reporting it unchanged and 14% moderately stronger. Household demand was also largely steady, with 90% reporting housing-loan demand unchanged and 92% reporting consumer-loan demand unchanged. Credit standards for approving loans were reported as basically unchanged by 94% of banks overall, while 4% reported some easing and 2% some tightening; spreads of loan rates over banks’ cost of funds were mostly unchanged across borrower rating categories, with 4–6% reporting increases and none reporting decreases. For the next three months, 96% of banks expected overall loan demand to remain about the same and all respondents expected firm loan demand to be unchanged. Most banks also expected credit standards to remain basically unchanged (88%), while 6% anticipated some tightening and 6% some easing; 10% indicated an intention to increase loan-rate spreads by borrower rating and 90% to keep them unchanged.