Mizuho Corporate Bank, one of the two main arms of Mizuho Holdings Inc., said Friday it will reduce its interest rate on ordinary deposits to a record low 0.001 percent per year from the current 0.02 percent, effective Monday.
It means depositing 1 million yen in the bank's ordinary deposit account will generate only 10 yen a year in interest.
The rate cut follows moves in April by Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corp. and other major commercial banks to cut rates to the same level.
Mizuho Corporate Bank could not follow suit because a massive computer system failure temporarily disrupted its remittance functions in April.
It elected to carry out the cut because the computer problems have been fixed, bank officials said.