Equitable Bank Cuts Prime Rate by 0.25% to 4.95%

Equitable Bank has reduced its prime lending rate by 25 basis points to 4.95% from 5.20%. The change is effective March 13, 2025. Concentra Bank, Equitable's subsidiary, has also reduced its prime lending rate by 25 basis points to 4.95% from 5.20%. Both rates are effective March 13, 2025.

Equitable Bank, Canada's Challenger Bank, made headlines on March 12, 2025, by announcing a reduction in its prime lending rate [1]. This move, effective March 13, 2025, sees the rate drop by 25 basis points to 4.95% from the previous 5.20%. Equitable Bank's subsidiary, Concentra Bank, also followed suit, lowering its prime lending rate by the same margin to 4.95% [1].

These reductions aim to provide relief and stimulate borrowing for both personal and commercial clients. The Bank of Canada's key interest rate has been on a downward trend, which has influenced the decision to lower prime rates [2]. The reduction in prime rates could lead to lower mortgage rates, reduced consumer debt costs, and increased business lending opportunities.

Equitable Bank's mission to drive change in Canadian banking aligns with this move, as it aims to enrich people's lives by delivering exceptional financial services [1]. With over 700,000 customers and six million credit union members, the reduction in prime rates could significantly impact a vast number of individuals and businesses [1].

This move by Equitable Bank is not an isolated incident. In January 2025, the bank reduced its prime lending rate by 25 basis points to 5.20% from 5.45% [2]. This reduction was also effective for both Equitable Bank and Concentra Bank.

In conclusion, Equitable Bank's reduction in prime lending rates to 4.95% is a strategic move aimed at providing relief and stimulating borrowing for its clients. This decision aligns with the Bank of Canada's key interest rate trend and Equitable Bank's mission to drive change in Canadian banking.

References:
[1] Equitable Bank. (2025, March 12). Equitable Bank reduces prime rate. PR Newswire. https://www.prnewswire.com/news-releases/equitable-bank-reduces-prime-rate-302400350.html
[2] MarketScreener. (2025, January 29). Equitable Bank reduces prime rate. MarketScreener. https://www.marketscreener.com/quote/stock/EQB-INC-1409929/news/Equitable-Bank-reduces-prime-rate-48905530/