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Banks move quickly to raise prime lending rates

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Banks move quickly to raise prime lending rates

Not too long after the Federal Open Market Committeefinally elected to increase the federal funds rate, banks started to announce they are increasing their prime lending rates.

In a statement released Wednesday by the Federal Reserve, the FOMC voted unanimously to raise the target range for the federal funds rate from 0.5% to 0.75%, effective Dec. 15, 2016.

Quickly thereafter, banks followed suite with a swarm of announcements that they were adjusting business to the change.

The last time banks raised their prime lending rates was when the Fed chose to raise rates in the December 2015 meeting.

Here are only a handful of the bank announcements.

Fifth Third Bancorp announced that it is increasing its prime lending rate from 3.5% to 3.75%, effective immediately. The rate was last changed on Dec. 16, 2015, when Fifth Third increased its prime rate from 3.25% to 3.5%.

Similarly, BB&T Corporation stated it is increasing its prime lending rate to 3.75% from 3.5%, effective immediately.

Effective Dec. 15, 2016, M&T Bank will increase its prime lending rate from 3.5% to 3.75%.

U.S. Bancorp also announced it has raised its prime lending rate to 3.75% from 3.5%, effective tomorrow, Dec. 15, 2016, at all U.S. Bank locations.

U.S. Bancorp last announced a change in its prime lending rate on Dec. 16, 2015, when it was increased 25 basis points to 3.5%.