Banking industry records 4.2% contraction in shareholders’ funds – BoG

Shareholders’ funds in the banking industry contracted by 4.2% to ¢25.4 billion in October 2023, according to the Bank of Ghana (BoG).

This decline is in contrast to the 11.9% growth observed in October 2022.

The Bank of Ghana attributes this contraction to losses from the Domestic Debt Exchange Programme, impacting the reserves of banks.

Additionally, the slower growth in paid-up capital, from 4.4% in October 2022 to 0.4% in October 2023, has contributed to the reduction in shareholders’ funds.

The Bank of Ghana anticipates an improvement in the equity position of banks as they intensify recapitalization efforts to meet the 2025 deadline set by the central bank.