NEW YORK — Riggs National Bank, the largest bank based in Washington, D.C., cut its prime rate by a quarter point to 8.75% Monday, but no other bank immediately followed suit.
Banks contacted by Reuters said they had no comment on the Riggs move down from the industrywide level of 9%. The bank is not known as a leader in the area of interest rates and is much smaller than the big city banks that normally lead the way.
A spokeswoman said the reduction reflects a drop in the bank's funding costs, following a decline in credit market interest rates since the stock market plunged two weeks ago.
The prime rate, traditionally the rate charged to a bank's best customers, had been as low as 8% in May. It rose to 9.75% at a handful of New York banks just before the steep decline in stock prices.