Two major financial institutions, Wells Fargo Bank, N.A. and Citizens Financial Group, Inc. (NYSE: CFG), recently announced increases in their prime rates, effective from March 23, 2023. Both banks will raise their prime lending rates to 8.00 percent, up from the previous 7.75 percent.
Wells Fargo’s decision to increase the prime rate comes as a response to recent economic developments, and it will affect various types of loans tied to the prime rate, such as adjustable-rate mortgages and variable-rate credit cards. This move demonstrates the bank’s commitment to adapt to shifting economic conditions in order to maintain stability and continue serving its customers effectively.
Similarly, Citizens Financial Group announced that its subsidiary, Citizens Bank, N.A., has also raised its prime lending rate to 8.00 percent, effective the same day as Wells Fargo’s change. This prime rate change is also in response to the prevailing economic environment, ensuring that the bank remains competitive and continues to meet the needs of its customers.
The prime rate adjustments by both banks come at a time when financial institutions are reassessing their strategies and adapting to economic fluctuations. As a result, borrowers and lenders alike can expect to see the impact of these changes on various types of loans and financial products tied to the prime rate.
This article, “Wells Fargo and Citizens Financial Group Announce Prime Rate Increases to 8%” was first published on Small Business Trends