Printer Friendly

IBJ to cut long-term prime rate to record-low 1.90%.

TOKYO, March 8 Kyodo

The Industrial Bank of Japan (IBJ) said Thursday it will cut its long-term prime lending rate by 0.15 percentage point to a record-low 1.90% per annum, effective Friday.

It is the second month in a row for the IBJ to cut the rate, which comes amid a decline in long-term rates following the Bank of Japan's decision to trim its target rate for unsecured overnight call money last week to around 0.15% from 0.25%.

The new rate matches the low seen in May and June of 1999, when the central bank guided the call money rate to nearly zero.

The cut in the long-term prime lending rate follows a fall to 1.00% from 1.15% in the coupon rate on five-year debentures issued this month by the IBJ, bank officials said.

The long-term prime rate, charged to the bank's most creditworthy customers on loans of one year or longer, is usually set 0.9 point higher than the coupon on five-year debentures issued monthly to institutional investors.
COPYRIGHT 2001 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Japan Policy & Politics
Date:Mar 12, 2001
Previous Article:Japanese editorial excerpts-GOVT MUST SHINE LIGHT ON SECRET FUNDS.
Next Article:Hyogo man held on suspicion of harboring Shigenobu.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters