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Prime Lending Rate

   Also found in: Financial, Acronyms, Wikipedia, Hutchinson 0.04 sec.

The lowest rate of interest that a financial institution, such as a bank, charges its best customers, usually large corporations, for short-term unsecured loans.

The prime lending rate is an economic indicator and is often used as a measuring point for adjusting interest rates on other types of loans. The rate varies according to economic factors.



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In recent years, banks have matched the change in the federal funds rate with an identical change in their prime lending rate often on the same day as the Fed's announcement.
Bancorp (NYSE:USB) announced it has raised its prime lending rate to 8.
Bancorp (NYSE:USB) announced it has raised its prime lending rate to 8.
 
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