Mizuho Corporate Bank said Wednesday it will cut its long-term prime lending rate by 0.1 percentage point to a record low 1.4 percent.
The change, effective Thursday, marks the third consecutive month that Mizuho has cut the interest rate it charges on loans of more than one year to its most creditworthy corporate clients.
The long-term prime is set 0.9 percentage point higher than the coupon on five-year bank debentures.
Mizuho decided on the reduction due to falls in yields on its debentures following recent slides in government bond yields induced by steady inflows of investment funds into the government bond market, officials at the bank said.
Shinsei Bank and Aozora Bank are expected to follow suit.