Japan's households have increased their financial assets to a record 2,351 trillion yen, reflecting a 5.3% rise from the previous year, as the Bank of Japan's holdings of government bonds drop below 50% for the first time in three and a half years.
The Bank of Japan recently announced the financial asset statistics for households as of December 2025, revealing that household financial assets have reached a record high of 2,351 trillion yen, an increase of 5.3% compared to the same period last year. This rise is largely attributed to the increasing stock prices, with equity and investment trusts also showing significant gains. The holdings of government bonds by the Bank of Japan have fallen below 50% of total outstanding bonds for the first time since mid-2022, indicating a shift in fiscal policy direction.
Household financial assets have shown robust growth, with equities increasing by 22.6% to 342 trillion yen and investment trusts up by 21.3% to 165 trillion yen, both reaching all-time highs. The surge in Japan's stock market, highlighted by the Nikkei's surpassing 50,000 points for the first time, has encouraged more individuals to invest in financial products, aided by the growing popularity of the NISA tax-exempt investment scheme.
On the other hand, household financial liabilities have also reached an all-time high, primarily due to increased housing loans. The total financial liabilities rose by 2.9% to 406 trillion yen. Meanwhile, the value of government bonds held by the Bank of Japan decreased to 503 trillion yen, down from 522 trillion yen in September 2025. This decline is attributed to reduced government bond purchases, resulting in the Bank's share of total outstanding government bonds dropping to 49.04% after having been above 50% for three and a half years.
