Japan Private Credit, Index 2015 = 100

## What this measures

Credit to Japan's private non-financial sector at the end of each year (the fourth-quarter level of bis.private_credit_lcu.jpn) divided by its level at the end of 2015, × 100, in local currency. Written only for years that also have World Bank nominal GDP, so it pairs with gdp.nominal_lcu_index_2015.jpn year for year.

## Why it matters

Set against nominal GDP growth over the same years, it shows whether borrowing ran ahead of the economy. Above GDP growth, the credit-to-GDP ratio rose.

## How to read it

200 means credit doubled since 2015. Both indexes are in local currency and include inflation, so they compare directly with each other but not across countries' inflation rates.

## What it does not say

An end-of-year stock against a whole-year flow: the ratio of the two indexes tracks the credit-to-GDP ratio closely but not exactly. It does not say who borrowed or why.

## Source

Palanor calculation from Bank for International Settlements total credit statistics (`WS_TC/Q.JP.P.A.M.XDC.A`). Source: BIS. Used under the BIS terms for statistics: reuse is unrestricted with the BIS cited as the source, and the statistics carry no additional charge in Palanor.