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Japanese Banks SMBC and MUFG Drive Growth in Australian Business Lending

Japanese Lenders Fuel Expansion in Australia’s Booming Business Loan Market

Japanese Banks SMBC and MUFG Drive Growth in Australian Business Lending?w=400

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In a notable shift within Australia's financial sector, Japanese banking giants Sumitomo Mitsui Banking Corporation (SMBC) and Mitsubishi UFJ Financial Group (MUFG) have emerged as key drivers of growth in business lending.
As of July 2025, business lending volumes across Australia's top 10 authorized deposit-taking institutions (ADIs) reached A$925 billion, with SMBC and MUFG leading the expansion.

SMBC recorded a 4.66% increase in their business loan book for July, adding A$1.19 billion, while MUFG achieved a 3.63% growth, contributing an additional A$0.62 billion. These figures mark significant monthly performances and highlight the increasing appetite of international institutions for Australian lending opportunities.

The exceptional performance of these Japanese banks demonstrates their strategic commitment to the Australian market. Leveraging their strong capital positions and expertise in corporate lending, SMBC and MUFG are reshaping the competitive dynamics within the business lending space.

For Australian businesses, particularly SMEs, this development offers access to a broader range of financing options and potentially more favorable lending terms. The increased competition among lenders may lead to more innovative financial products and services, benefiting the overall business community.

Published:Saturday, 27th Sep 2025
Source: Paige Estritori

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