ROANOKE TIMES 

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, April 20, 1994                   TAG: 9404200095
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

VA. BANKS FOLLOW TREND, RAISE RATES

All of Virginia's major banks increased their prime rate Tuesday from 6.25 percent to 6.75 percent.

They followed the lead of the nation's money center banks in responding to the action Monday of the Federal Reserve Board in raising short-term interest rates.

That was the third quarter-point increase in the rate since Feb. 4 in a move designed to fight inflation.

The increase means an immediate jump for commercial lending. It will reflect as well in consumer loans, especially home equity lines tied to the prime rate. Mortgage and other loan rates will rise as well.

The banks that increased their prime rates Tuesday were Central Fidelity, Crestar, First Union, First Virginia, NBC and NationsBank. The 6.75 percent rate takes effect today at Signet.

- Staff report 


 by CNB