Deposit Growth Trails Lending At Japanese Megabanks
2026-05-08·via All Articles on Seeking Alpha
Summary
Deposits are growing at a slower pace than loans at Japanese megabanks, potentially crimping lenders' securities investments and even lending.
As the central bank started raising its benchmark interest rate as part of a normalization cycle and to contain inflationary pressures, Japanese lenders are increasingly forced to compete for deposits, which ultimately get used to fund loans.
M&A involving Japanese companies rose 8.8% to 5,115 deals in 2025, marking a second consecutive record high, according to Recof, a Japanese M&A advisory firm.
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Deposits are growing at a slower pace than loans at Japanese megabanks, potentially crimping lenders' securities investments and even lending.
Mitsubishi UFJ Financial Group Inc. (MUFG), Sumitomo Mitsui Financial Group Inc. (
