Mizuho Corporate Bank, a unit of Mizuho Holdings Inc., said Monday it will cut its long-term prime lending rate by 0.1 percentage point to 1.55 percent per year, matching the record low marked in July 2001.
The cut, effective Wednesday, is the first since October.
Other lenders, including Shinsei Bank and Aozora Bank, are expected to lower their long-term prime lending rates, which are charged on loans of more than one year to their most creditworthy corporate clients.
Mizuho Corporate Bank decided to cut the rate due to falls in yields on Mizuho Corporate Bank debentures following recent slides in government bond yields amid growing concerns over deflation, bank officials said.
The lowest level on record was marked in July 2001 by Industrial Bank of Japan, one of three core banks that merged in April to create the Mizuho Financial Group.
Two other precursors of Mizuho, the world's largest bank in terms of assets, were Fuji Bank and Dai-Ichi Kangyo Bank.