Shareholders’ funds in the banking industry contracted by 4.2% to ¢25.4 billion in October 2023, the Bank of Ghana has revealed.

This is compared to a growth of 11.9% in October 2022.

According to the Bank of Ghana, this reflects losses from the Domestic Debt Exchange Programme which impacted the reserves of banks.

The decline in shareholders’ funds, it added, is also attributable to the slower growth in paid-up capital from 4.4% in October 2022 to 0.4% in October 2023.

The equity position of banks is, however, projected to improve as banks step up recapitalisation efforts to meet the 2025 deadline announced by the Bank of Ghana.