Japan will relax bank lending limits for M&A and push pension funds to boost allocations to alternative assets under Prime Minister Sanae Takaichi’s economic growth plan. Banks would be allowed to exceed existing loan caps to finance large acquisitions and AI data-center projects, and the government will ease rules to let bank-affiliated investment units more readily provide equity financing for buyouts and corporate spinoffs. The plan also calls for a review of the “firewall” rules that bar com

2026-07-21

Japan will relax bank lending limits for M&A and push pension funds to boost allocations to alternative assets under Prime Minister Sanae Takaichi’s economic growth plan. Banks would be allowed to exceed existing loan caps to finance large acquisitions and AI data-center projects, and the government will ease rules to let bank-affiliated investment units more readily provide equity financing for buyouts and corporate spinoffs. The plan also calls for a review of the “firewall” rules that bar commercial banks and securities arms within the same financial group from sharing client information.