President of the Ghana Bankers Association, Alhassan Andani has been assuring the business community that commercial banks will start reducing their lending rate from the first quarter of next year.

It follows the Bank of Ghana’s decision to reduce the policy rate by 100 basis points to 20 percent - citing favourable economic outlook and easing of threats to inflation.

This is the first time since September 2014 that the rate has hit the 20 percent mark. In an interview with JOYBUSINESS, Alhassan Andani said banks are ready to follow the downward rule.

Mr. Andani said, “The policy rate cut is very welcomed. There’s been a lot of agitation for us to review interest rates and I'm sure you’d see already there have been 450 basis points cut in the policy rate. This is just another 100 basis points cut.”

“I’m sure before the first quarter before the end of the year most banks would have gone through their ALCO or Assets-Liability Managements Committee meetings and to review their prices so I expect us to see new lending rates announced and published in January,”he added.

He made the disclosure on the sidelines of the 21st National Banking Conference in Accra under the theme “Building a robust and sustainable banking system in Ghana”.

The conference is part of the 2017 banker’s week celebration organized by the Chartered Institute of Bankers Ghana.

Meanwhile, the Vice President Dr Mahamudu Bawumia giving the keynote address at the conference hinted that the next face of government’s digitization is going to focus on developing the mortgage market.

According to him, this will be done through a proper land title registration system to be introduced next year.

“The next big focus for government from next year is the issue of land title registration. The need to have a digital land title registration will help improve the housing industry and drive down the cost of mortgage in the country” Dr. Bawumia said.