Nine Japanese banks said Tuesday they will raise their short-term prime lending rates by 0.125 percentage point, following the Bank of Japan's decision Aug. 11 to scrap its "zero-interest-rate" policy.
The Industrial Bank of Japan, Fuji Bank, Mitsubishi Trust & Banking Corp., Sumitomo Trust & Banking Co., Toyo Trust & Banking Co. and Nippon Trust Bank said they will raise their short-term prime rate to 1.5 percent from 1.375 percent, effective Thursday.
In addition, Daiwa Bank will raise its rate to 1.625 percent from 1.5 percent, the Bank of Yokohama to 1.75 percent from 1.625 percent, both effective Friday; while Tokyo Tomin Bank will raise its to 2 percent from 1.875 percent, effective Aug. 31.
Short-term prime rates are charged on loans of less than one year to banks' most creditworthy corporate customers.
Most of Japan's major commercial banks have already announced plans to raise their short-term prime rates.
Sanwa signs alliance
Sanwa Bank and Deutsche Bank AG of Germany said Tuesday they have agreed on an alliance to administer and manage funds for Japanese companies operating in Europe.
Under the agreement, Deutsche Bank will administer funds for Japanese firms in Europe while Sanwa Bank will offer fund management and settlement services for them, the two banks said.
Sanwa will also help Japanese companies on the continent raise funds, they added. The two banks plan to start the new service by the end of the year.