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Japanese Banks Drive Significant Growth in Australian Business Lending
Exploring the Impact of SMBC and MUFG's Expansion on Australia's Business Loan Market
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Australia's business lending landscape has experienced remarkable growth, with the top 10 authorised deposit-taking institutions (ADIs) reaching a combined loan book of $925 billion as of July 2025.
Notably, Japanese banking giants Sumitomo Mitsui Banking Corporation (SMBC) and Mitsubishi UFJ Financial Group (MUFG) have emerged as key contributors to this expansion.
SMBC recorded a 4.66% increase in their business loan book for July, adding $1.19 billion, while MUFG achieved a 3.63% growth, marking its second-strongest monthly performance in 2025. This surge reflects the growing appetite of international institutions for Australian lending opportunities and highlights the dynamic nature of the country's financial sector.
For Australian businesses, this influx of foreign capital presents new opportunities for financing and underscores the importance of understanding the evolving landscape of business lending.
Published:Thursday, 5th Feb 2026 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
In November 2025, Australia's mortgage market achieved a new milestone, with the total value of residential mortgages reaching $2.41 trillion. This record-breaking figure reflects a 0.67% increase from the previous month and a 6.36% rise over the past year, as reported by the Australian Prudential Regulation Authority (APRA). - read more
The Australian mortgage market has witnessed a significant surge in refinancing activity, with nearly 100,000 loans refinanced in the June 2025 quarter. This marks the highest level since September 2023 and reflects homeowners' proactive responses to recent interest rate cuts by the Reserve Bank of Australia (RBA). - read more
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