BUSINESS BRIEFS
Banks boost lending rate

Advertiser Staff

First Hawaiian Bank, Bank of Hawaii and American Savings Bank announced yesterday that they would raise their prime lending rate to 5.0 percent from 4.75 percent in response to the Federal Reserve's decision to hike a key lending rate.

The Fed's monetary policy committee increased the target for the federal funds rate to 2 percent from 1.75 percent yesterday. The move is part of a credit-tightening campaign to bring rates back up to more normal levels now that the economic recovery is more deeply rooted.

HEI executive to retire in April

Hawaiian Electric Industries Inc. announced yesterday that Peter C. Lewis, vice president, administration and corporate secretary, will retire after 38 years of service with the company.

Lewis will retire April 26, the date of the 2005 HEI annual shareholders' meeting. HEI is the parent company of Hawaiian Electric Company and American Savings Bank. Patricia Uyehara Wong, who serves as HECO's vice president for corporate excellence, will succeed Lewis.

Kava harvest down 58%

Hawai'i's kava harvest fell 58 percent in 2003 as concerns about the safety of herbal medicines continued to plague the industry, the Hawaii Agricultural Statistics Service said yesterday. Plant disease also hurt crop production.

Despite those problems, farm-level revenues rose 59 percent, to $110,000, on higher prices as some growers exited the market.

Kava, which is used to treat anxiety, among other things, has been linked to possible liver problems.