BOJ loan officer survey: corporate loan demand DI turns positive at 3, while banks lean toward wider spreadsBanks say slightly more companies want to borrow money
On October 22, 2026 (Reiwa 8), the Bank of Japan published its Senior Loan Officer Opinion Survey on Bank Lending Practices (October). The diffusion index (DI) for corporate loan demand over the past three months was 3, turning positive from minus 1 in the previous survey, and the DIs for large, mid-sized and small firms all rose from the previous survey. On the other hand, among lending conditions for firms, more banks answered that they tightened loan spreads for every firm size, so borrowers should keep an eye on interest terms.
Key points
- The survey covers 50 domestic banks and shinkin banks with the largest loan balances (about 80% of lending). Responses were collected from September 9 to October 13, 2026
- Loan demand DIs over the past three months: firms 3 (previous minus 1), local governments minus 4 (previous 3), households 5 (previous 3)
- By firm size, the loan demand DI was 5 for large firms (previous 2), 1 for mid-sized firms (previous minus 2) and 1 for small firms (previous minus 2). The outlook DI for corporate demand over the next three months is 6
- Lending attitude DIs were 0 for large firms (previous 1), 2 for mid-sized firms (previous 3), 3 for small firms (previous 5) and 1 for households (previous minus 2), so the degree of easing is small
- The lending-condition DI for loan spreads (narrowing = easing) was minus 7 for large, mid-sized and small firms alike. The loan spread DI by credit rating (widening minus narrowing) was 12 for high-rated, 10 for medium-rated and 10 for low-rated borrowers, and 12 for all three ratings for the next three months, so answers favouring wider spreads continue
What to do in practice
- If you plan to borrow or refinance, compare interest (spread) terms from several financial institutions and keep a record of the terms offered
- Use your cash flow plan to estimate how much interest costs would rise if borrowing rates go up
Companies sometimes borrow money from banks to buy machines or pay wages. The Bank of Japan asked 50 large banks and shinkin banks, "Have more companies wanted to borrow money lately?" and announced the results on October 22, 2026. More banks than last time said "yes, more." But some banks also said they were moving to add more extra interest when they lend.
Points
- A survey asking 50 large banks and shinkin banks about the last three months
- Slightly more companies, both big and small, wanted to borrow money than last time
- Some banks were moving to add more extra interest when they lend
What the words mean
- Bank of Japan
- Japan's central bank, which issues banknotes and watches over the flow of money in the whole country
- Loan spread
- The extra interest a bank adds on top of the base rate when it lends money
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