Lending in September by regional banks grew at triple the pace of the nation's megabanks as Prime Minister Shinzo Abe acted to rejuvenate areas outside of Tokyo.
Loans by the smaller lenders increased 3.6 percent from a year earlier to ¥215 trillion, while those by city banks including Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. rose 1.2 percent to ¥201 trillion, according to Bank of Japan data.
The gap in funds extended was the largest on record since regional banks overtook city lenders in July 2011.