IBJ to cut long-term prime lending rate

The Industrial Bank of Japan said Thursday it will cut its long-term prime lending rate to 2.1 percent from 2.25 percent, effective today.

The move follows a cut to 1.2 percent from 1.35 percent in the coupon rate on five-year debentures issued by the IBJ, bank officials said.

The cut will mark the third straight month for the bank to reduce its prime lending rate.

It reduced the rate to 2.25 percent from 2.3 percent last month, following a reduction from 2.4 percent in October.

The long-term prime rate, charged to the bank's most creditworthy customers on loans of one year or longer, is customarily set 0.9 point higher than the coupon on five-year debentures issued monthly to institutional investors.

Two other long-term credit banks -- Shinsei Bank and Nippon Credit Bank -- followed suit.