ROYAL OAK, Mich. -- Citing favorable rate spreads, National Bank of Royal Oak has lowered its prime lending rate to 6% from 6.5%.

The unit of Royal Bank Group Inc., which has $183 million in assets, has at times changed its prime ahead of moves by larger institutions.

"Our cost of funds, based largely on the costs of short-term Treasury bill rates, has continued to decrease," the bank said. "The continuing decrease in interest rates for deposits makes it possible for us to lower our prime."

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