Mizuho's Long-Term Prime Rate to Hit 15-Year High

Tokyo, Nov. 7 (Jiji Press)--Mizuho Bank said Thursday that it will raise its long-term prime lending rate by 0.1 percentage point to 1.85 pct, the highest level in 15 years, effective Friday.

The bank's long-term prime rate will rise for the third straight month, reflecting a rise in Japanese government bond yields.

SBI Shinsei Bank, Aozora Bank and Shoko Chukin Bank said the same day that they will also raise their respective long-term prime rates to 1.85 pct on Friday.

Long-term prime rates are used when giving one-year and longer-term loans to large companies. But instead of them, many new loans are currently based on short-term prime rates, which are used for adjustable-rate housing loans.

Many banks have recently raised their short-term prime rates in response to a policy rate hike by the Bank of Japan.

[Copyright The Jiji Press, Ltd.]