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.
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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.
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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.