The European Central Bank wants to include gender diversity as a criteria to approve bank board members and executives, a step that would put further pressure on a sector where the vast majority of senior posts are still held by men.
It added that only a fifth of the positions in the management bodies of Europe’s largest banks are held by women, and while European law requires banks to have a diversity policy, less than two thirds do.
The new criteria will be used when the supervisor reviews new or current board members or executives, a process known as a “fit-and-proper” assessment.
“Whenever targets are not met, we will issue recommendations to remedy such imbalances,” Elizabeth McCaul, a member of ECB’s supervisory board, and a colleague said in an opinion piece published on the regulator’s website.
“If there are manifest breaches of diversity strategies, we may need to obligate banks to comply with these strategies,” they added.
European Central Bank, European Banking Authority