This statistic is a call to action* - OMFIF
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
This statistic is a call to action* *It’s how many leading global financial institutions achieved gender balance in 2021
Sustainable
Policy
Institute
The Sustainable Policy Institute is a high-level community designed to meet the policy,
regulatory and investment challenges posed by environmental, social and governance factors.
Membership offers insight through Analysis and Meetings, drawn from the expertise of OMFIF’s
in-house specialists and global network of public and private sector members. The Institute
publishes regular data, updates members on new developments and innovations and convenes
discussions in a variety of formats to help shape the sustainability agenda.
omfif.org/spi
For membership enquiries, please contact Mingiyan.Shalkhakov@omfif.org
omfif.org FOREWORD 3
A ‘she-cession’ hurts us all
Ignoring the fact say childcare responsibilities are the main reason,
according to the latest McKinsey and Lean In ‘Women in
that the pandemic
the Workplace’ study.
has affected women Why does this matter? Several studies have found
more than men that the share of women in unpaid care work has a
will deepen the high and negative correlation with female labour force
economic fallout participation rates. It also has a negative impact on
women’s chances for professional and technical jobs
from Covid-19.
or holding leadership positions. If this disproportionate
By Ana Botín, impact on women goes unaddressed, it will not only put
Executive Chairman at risk gender equality, but also have global economic
of Santander. consequences.
During the Covid-19 crisis, the priority of most
financial institutions has been (and still is) the wellbeing
of their teams. At Santander, we provided the tools for
EVERY March we take stock of women’s rights in remote working after sending home 100,000 employees.
the world: looking at how far we’ve come and, more We also adapted our branch network to ensure the
importantly, how much further we still have to go. But safety of staff who continued to interact with customers
2020 was a year like no other for gender equality. in person. As work-life balance and stress brought
The social and economic consequences of the further challenges, we implemented flexible working
pandemic have fallen disproportionately on women. arrangements and gave mental health support, as well as
There is even a word for it: ‘she-cession’, coined by advancing payments and granting special loans.
C. Nicole Mason. It highlights that, for the first time in Organisations can and must do their part, but
history, the US is experiencing an economic downturn government policies are crucial. If governments work
where unemployment and income losses are affecting with the private sector to develop effective, evidence-
women more than men. based interventions, we
But it is not only happening in the US. According to can counter workplace ‘If the
the recent International Labour Organization report, in inequality while disproportionate
2020 the global loss in employment for women was 5%, encouraging a balanced
impact on women
versus 3.9% for men. Why are women more at risk than recovery. Promoting
men of losing their jobs? A quarter of global job losses gender equality could goes unaddressed,
come from sectors in which women account for a higher add $13tn to global it will not only put at
proportion of the workforce: leisure, hospitality and retail gross domestic product risk gender equality,
have all been hit hardest. by 2030. If we ignore but also have
But there’s another critical reason. Lockdowns have the fact that the
global economic
meant many of us (including men) have had to provide pandemic is affecting
additional childcare, education and housework: 52 hours women differently, our consequences’
a week on average, more than another full-time job. economic recovery will
But the burden of unpaid care work falls unequally on be unequal and slower.
women. Even before the pandemic women globally were As we continue to plan our way out of this crisis,
doing on average 75% of unpaid care work. According to we must remember that a ‘she-cession’ hurts us all.
United Nations Women, during Covid-19, women have When we support women, we support families and
been doing a full working day of unpaid childcare more communities: the financial empowerment and economic
than men each week. wellbeing of women is good for everyone and it is the
One in four women have considered downshifting foundation of an equitable, resilient and sustainable
their careers or leaving work altogether, and the majority post-pandemic world. •
4 GBI 2021
About OMFIF AUTHORS:
With a presence in London, Singapore, Danae Kyriakopoulou
Washington and New York, OMFIF is an Chief Economist & Director of Research
independent forum for central banking, Clive Horwood
economic policy and public investment — a Managing Editor & Deputy Chief Executive Officer
neutral platform for best practice in worldwide
public-private sector exchanges. Kat Usita
Deputy Head of Research
For more information visit omfif.org or email
enquiries@omfif.org Natalia Ospina
Research Assistant
Levine Thio
Research and Programmes, Asia Pacific
In partnership with PRODUCTION:
Simon Hadley
Director, Production
William Coningsby-Brown
Assistant Production Editor
Sarah Moloney, Fergus McKeown
Subeditors
OMFIF wishes to thank the following contributors :
Marouane El Abassi Henriette Kolb
Banque Centrale de Tunisie International Finance
Caroline Abel Corporation
Central Bank of Seychelles Rose Kerlin
AustralianSuper
Helena Maria Adegas
Banco de Portugal Jamie Krulewitz
Fitch Ratings Ltd
Aishah Ahmad
Central Bank of Nigeria Sherry Madera
London Stock Exchange Group
Elsie Addo Awadzi
Bank of Ghana Monique Nsanzabaganwa
National Bank of Rwanda
Anita Angelovska Bezhoska
Siritida Panomwon Na
National Bank of the Republic
Ayudhya
of North Macedonia
Bank of Thailand
Ana Botín
Alessandra Perrazzelli
© 2021 OMFIF Limited. All Rights Reserved. Santander Banca d’Italia
Strictly no photocopying is permitted. It is Chad Cecere Heike Reichelt
illegal to reproduce, store in a central retrieval Japan Government Pension The World Bank Group
system or transmit, electronically or otherwise, Investment Fund
Susan Revell
any of the content of this publication without Mary C. Daly BNY Mellon
the prior consent of the publisher. While every Federal Reserve Bank of San
Gent Sejko
care is taken to provide accurate information, Francisco
Bank of Albania
the publisher cannot accept liability for any Susan Sabanci Dinçer
Rannveig Sigurðardóttir
errors or omissions. No responsibility will be Akbank
Central Bank of Iceland
accepted for any loss occurred by any individual Bertille Delaveau
Anne Simpson
due to acting or not acting as a result of any Banque de France
CalPERS (California Public
content in this publication. On any specific Verónica Artola Jarrín Employees’ Retirement
matter reference should be made to an Banco Central del Ecuador System)
appropriate adviser. Stavroula Kampouridou Aniela Unguresan
Company Number: 7032533. ISSN: 2398-4236 Bank of Greece EDGE Strategy
omfif.org 5
CONTENTS
EXECUTIVE SUMMARY 6 SOVEREIGN FUNDS
Diversity in a time of crisis
Danae Kyriakopoulou
YEAR IN REVIEW 8
Path to progress
Levine Thio
CENTRAL BANKS
Sovereign funds struggle to 54
make progress
Kat Usita
PENSION FUNDS
Missed opportunities slow central 10
bank drive
Danae Kyriakopoulou
GBI 2021 SURVEY
WAIT ACT
Progress requires positive action 28
OMFIF’s survey of 50 institutions Pension funds should apply pressure 60
shows that many need to do more to Kat Usita
promote diversity – but there are some
encouraging signs. Natalia Ospina DATABANK
OMFIF Gender Balance Index 67
COMMERCIAL BANKS Ranking and score of 185 central banks, 50
commercial banks, 72 sovereign funds and
233 public pension funds
METHODOLOGY 78
Banks fail to live up to their promises 41
Clive Horwood
C-Suite still leaves sour taste 48
Banks need to redefine their senior 52
role models
6 EXECUTIVE SUMMARY GBI 2020
Diversity
in a time
of crisis
Danae Kyriakopoulou,
Chief Economist &
Director, Research,
OMFIF
THE THEME of this year’s International Women’s Day Elevating anecdotal experiences of a male-dominated
is ‘Women in leadership: achieving an equal future in field into aggregate statistics is a sobering exercise. Out of
a Covid-19 world’. As many of the policy-makers and 540 institutions in the index, only 71 are headed by women
practitioners writing in this report note, the pandemic has and 56 have no women at all in their executive teams and
affected men and women differently. Science has shown boards. Only three of the institutions covered — or less than
that men are more vulnerable to the virus itself, but the 1% — achieved a perfect gender balance score of 100. Just
economic and social cost of the crisis has been higher 12 of these — or just over 2% — scored 90 or more, a level
for women. The pandemic has also tested leadership and that indicated the institution is close to achieving balance.
shown the benefits of diversity. In 2019, then IMF Managing By confronting people with the numbers, we hope to
Director and now European Central Bank President mobilise decision-makers towards improving results and
Christine Lagarde told the Daily Show’s Trevor Noah that, measuring progress.
‘Whenever the situation is really, really bad, you call in the The conclusions are clear: lack of diversity in the field
woman’. is a structural, persistent problem. Progressive policies
2021 has started strongly with a series of historic are needed to correct the historic underrepresentation of
appointments of women in leadership. In January, Kamala women and level the playing field. And, while more balanced
Harris was sworn in as the first female US vice president talent pools bring hope, the issue will not go away by itself.
and Janet Yellen as the first female US treasury secretary. The index tracks the presence of men and women in
In February, Jane Fraser became CEO of Citi, the first decision-making positions in financial institutions. A score
woman to lead a major US bank, while Ngozi Okonjo-Iweala of 100 represents perfect balance (see methodology
become the first woman to assume the office of Director- on page 78). For the first time this year we are including
General of the World Trade Organization in March. At the commercial banks in the analysis to make comparisons
time of writing, one of the two candidates in the running for between the public and private sector. The 50 commercial
the position of Secretary General of the Organisation for banks selected for this report achieved an average score of
Economic Co-operation and Development is a woman. Her 29.9, compared to the weighted average score of 27.0 for
appointment would be another historic first. central banks, 25.4 for pension funds and 18.6 for sovereign
These appointments should be celebrated. High-profile funds.
female leaders in finance and public policy prove that the Taken together, these scores suggest that financial
‘old boys’ club’ is opening the door to others who can bring institutions still have a long way to go when it comes to
new perspectives and experiences. They also act as role achieving gender balance.
models to younger talent, demonstrating that successful We are grateful to the institutions who participated in
careers are possible. But these celebrations are also a our survey, and to the 116 women and men from across
reminder of how few female leaders there are and a cause 85 institutions that have shared their experiences in this
of exasperation: why has it taken so long? report or in the conversations we have organised around
The OMFIF Gender Balance Index, now in its eighth it. One common theme emerges: diversity matters, not
year, is a call to action. In the many conversations that our only as a value for public institutions representing society,
research has generated over the years, a common reaction but because it helps drive better results. We look forward
across audiences has been: ‘We knew diversity in the field to engaging with this community further and translating
was bad, but we didn’t know it was that bad’. analysis into policy actions to improve results. •
omfif.org EXECUTIVE SUMMARY 7
Key findings
Central banks Sovereign and public Commercial banks
pension funds
2.2%
• Only three out of the 50
• Sovereign funds remain the commercial banks in our index
least balanced institutions with a were headed by women at the
score of 19, a deterioration from time of the data collection. This will
last year. soon go up to six now that Jane
Financial institutions Fraser has taken her seat as CEO
• Only eight of 72 sovereign fund of Citi and Hana al Rostamani has
that score more than CEOs are women and less than a become head of First Abu Dhabi
90 in the GBI quarter have any women at all in Bank, while Helen Wong will do the
senior management and/or board same at Singapore’s OCBC in April.
• Central banks fail to improve on level.
gender diversity in top positions. • Of more than 500 commercial
18%
The global score remains broadly bank executive committee
unchanged at 27. members that are currently running
• Out of 31 central bank governors P&L divisions, just 18% are women.
who were appointed last • 39% of women on bank executive
year, only one was a woman – Only 18% of pension committees are in administrative
Vietnam’s Nguyen Thi Hong. fund CEOs are roles, compared to just 15% of men.
• Below the top, more women are women • US commercial banks score an
appointed to senior positions: in
79 central banks scores improved average of over 40 in the index; all
and in 51 scores declined. • Victorian Funds Management other regions score less than 30.
15%
Corporation tops the index again,
• The Federal Reserve Bank this time with a score of 100.
of Richmond tops this year’s
index, the only central bank in • Pension funds analysis reveals
the index’s history to achieve a a stark contrast between
perfect score of 100. The central Europe and Asia Pacific,
banks of Eswatini, Lesotho, Spain with the former scoring a
15% of bank C-suite
and Aruba follow, all with scores regional average of 47, more executives are
above 90. than double Asia Pacific’s 19. women
1. Private sector outperforms on diversity 2. Europe leads on diversity
Gender Balance Index scores, by institution type, Gender Balance Index scores, by region and institution
2018-present type, 2021
50 50
45 45
40
40
35
35
30
30 25
25 20
20 15
10
15
5
10
0
Europe North Asia Latin Africa Middle Global
5 America Pacific America East
Caribbean
0
Central banks Sovereign funds Pension funds* Commercial banks Central banks Pension funds*
2018 2019 2020 2021 Sovereign funds Commercial banks**
Source: Gender Balance Index 2021 Source: Gender Balance Index 2021
*Pension funds analysis extends to Europe and Asia Pacific only. **For the commercial banks analysis one joint score was given to the regions of
Latin America, Africa Central & Eastern Europe and the Middle East. OMFIF’s research, based on a database of almost 9,000 individuals, tracks
progress in gender diversity across central banks, sovereign funds, public pension funds and commercial banks. Results are complemented by an
anonymous survey of institutions’ diversity and inclusion strategies, helping share best practice in designing policies that work.
8 YEAR IN REVIEW GBI 2021
Path to progress
Financial institutions are moving towards better representation at senior management
and board levels, as shown by several important developments in the past year.
Levine Thio
Important speeches Coping with Covid-19
Central bankers said the pandemic has exacerbated Women have been disproportionately affected by
existing inequalities and they stressed the need to the pandemic because the blurring of the boundaries
take gender issues into consideration when planning between work and home life has further intensified
for recovery. Central bankers also underscored existing difficulties. Based on data from United
the importance of gender diversity and creating Nations Women and Ipsos, women are spending
an inclusive environment for women in the field of almost six hours more per week on childcare
economics and fintech. compared to three additional hours men spend.
In OMFIF’s survey of central banks, 67% of
‘Covid-19 is having a disproportionate impact respondents have improved their existing flexible
on certain groups in society such as women, working arrangements as a result of Covid-19, enabling
people from ethnic minority backgrounds staff to engage in remote working, flexible working
and others from socio-economically hours and split team arrangements.
disadvantaged backgrounds’ Of the respondents, 12% gave staff additional
Gabriel Makhlouf, Governor, Central Bank of Ireland childcare benefits and support. These include
medical and education benefits, additional caregiving
allowances and paid leave because of the temporary
closure of kindergartens and schools.
‘[Covid-19] has driven us to reinforce taking
care of our employees and their families,
fostering a work-life balance’
Survey respondent
ft.com, 17 November 2020 To cope with the pandemic, policy-makers and
regulators around the world rolled out 2,517 policy
‘The government has also resorted to the measures classified as gender-sensitive in the
use of digital means of cash transfers to Covid-19 Global Gender Response Tracker published
women and other groups under the Livelihood by the UN Women and UN Development Programme.
Empowerment Against Poverty programme These include policies that directly address women’s
using the biometric e-switch card and mobile economic and social security, the labour market,
money interoperability platform’ violence against women and unpaid care.
Ernest Addison, Governor, Bank of Ghana • 1,061 social protection measures such as Myanmar’s
maternal and child cash transfer programme.
• 249 labour market measures that include virtual
training in Colombia and Chile and South Korea’s
temporary subsidies for employees with children.
• 503 fiscal and economic measures such as Nigeria’s
central bank credit facility for SMEs and Canada’s
interest-free loans to small businesses and not-for-
profits.
bloomberg.com, 28 September 2020 • 704 measures on violence against women and girls
including support networks for women and hotlines in
Argentina.
omfif.org YEAR IN REVIEW 9
First females New programmes
These women have recently been appointed European Central Bank launches new
to key positions in their fields programme to improve gender balance
The goal is to increase the share of women at all
staff levels, going beyond previous efforts that
Nguyen Thi Hong, State only targeted management positions.
Bank of Vietnam
Hong is the first female Santander sets targets to increase female
governor of the SBV in its representation
seven-decade history. She Santander’s goal is for women to occupy between
has worked at the central bank 40% and 60% of board positions by the end of
since 1991 and became deputy governor in 2021.
2014.
Iceland’s central bank implements shorter work
Jane Fraser, Citi week for work-life balance
Fraser is Citi’s first female CEO The Central Bank of Iceland reduced its working
and the first to run a major US week by 45 minutes, amounting to four and a half
bank. She has been with Citi days per year, to promote a more family-friendly
since 2004, and was previously environment.
president and CEO of Citi’s
Global Consumer Bank. Bank of Papua New Guinea develops policy
against domestic violence and sexual
Tokiko Shimizu, Bank of harassment
Japan Aligned with the country’s broader policy on
Shimizu is the first woman to dealing with family sexual violence, the bank is
serve as executive director formalising its own internal guidelines.
in the central bank’s 138-year
history. She became the first Norges Bank Investment Management pushes
female branch manager of the BOJ in 2010. for greater gender diversity on boards
NBIM published its position paper on board
Nik Amlizan Mohamed, diversity and will be working with company boards
Kumpulan Wang to encourage gender balance targets.
Persaraan
Nik Amlizan is the first female Goldman Sachs will not take public any
CEO of Malaysian pension fund company with an all-male board
KWAP. She returned to KWAP Chief executive David Solomon announced that
after a two-year stint as CEO of Malaysia’s Goldman Sachs will not underwrite initial public
Armed Forces Fund Board. offerings of companies unless they have at least
one board member from an under-represented or
Helen Wong, OCBC minority group.
Wong will become the first
female CEO of Singapore’s Nigeria’s central bank aims to increase
OCBC Bank in April 2021. She women’s financial inclusion
was previously the bank’s With its National Financial Inclusion Strategy, the
deputy president and head of Central Bank of Nigeria is targeting 80% financial
global wholesale banking. inclusion. Only 59% of women have access to
formal financial services, making them one of the
Laura Wallis, Bank of five most-excluded demographics.
England
Wallis is the first woman to be State Bank of Pakistan publishes draft policy
appointed private secretary for closing gender gap in financial inclusion
to the governor of the Bank of The central bank has drafted a policy aimed at
England, a role that involves improving women’s access to financial services,
overseeing the implementation of the for example through institutional diversity and
governor’s policies. product diversification.
10 CENTRAL BANKS GBI 2021
Missed opportunities slow
central bank
diversity drive
Just one out of 31 central
bank governors appointed
last year was a woman. But
the likes of the ECB and the
Fed are transforming the next
generation of leaders.
By Danae Kyriakopoulou
CHRISTINE Lagarde doesn’t mince diversity enhances decision-making a rarity in the male-dominated field
her words on the topic of female and that women bring different of central banking, more than a
bosses. experiences, perspectives and skills year after her appointment as the
‘Women tend to do a better to policy-making. But the crisis has ECB’s first female president and
job,’ the president of the European also exposed the disproportionate her ranking by Forbes magazine as
Central Bank told The Washington burdens that women in the wider the world’s second-most powerful
Post in July 2020 when asked what population carry, from unpaid work woman (after Merkel). She is one
she thought Europeans have learnt at home and caring for others to of only 18 women in the world
about political leadership during the increased domestic violence as well leading a central bank; the other
Covid-19 crisis. Lagarde praised the as discrimination and harassment in 167 are led by men. At home, her
policies and communication styles of the workplace. These factors make leadership contrasts with the all-
leaders such as German Chancellor it even harder to ensure the wider male Eurosystem of national central
Angela Merkel and her female peers participation of women in leadership bank governors. The ECB ranked
in Belgium, Taiwan and New Zealand. positions. 91st out of 185 institutions examined
Female leaders in several in this year’s Gender Balance Index
other countries won praise for Largarde is still a rarity for central banks, with a score of 30
their effective handling of the Central banking is no exception (where 100 means perfect balance,
crisis and for their empathetic and is, in many ways, even worse see methodology on page 78).
and compassionate style of compared with other public policy- The ECB says ‘diversity is a key
communication. It is clear that making institutions. Lagarde is still contributor to our success’, as it is
considered to ‘enrich the quality of
work and to add value to the ECB’s
1. Number of decision-making’, according to its
President Woman
women on 2000 2005 2010 2015 2020 2025 2030
own diversity statement. But is
ECB board at Germany Schnabel
the central bank practising what it
historic high... France Lagarde preaches?
of two Italy Panetta Consider the top echelon of
Appointments Spain Guindos decision-making: the ECB’s main
on the ECB Netherlands Elderson executive body or governing council
executive board, Luxembourg
1998-present,
Mersch is made up of the 19 governors of
Belgium
by country and NCBs from across the Eurosystem
Ireland Lane
gender and the six-member executive
Portugal
Source: European
Austria
board based in Frankfurt. Since its
Central Bank, creation in 1998, only one out of 63
Greece
Bloomberg
Finland NCB governors has been a woman
– Chrystalla Georghadji of Cyprusomfif.org CENTRAL BANKS 11
(2014-18). The executive board 45 2. Emerging
42.3
has done better with a total count markets
38.1
40
37.3
in its history of five women out of show most
35.8
34.7
34.6
25, but is still far from balanced.
35 improvement,
29.9
With the appointments of Christine 30 Middle East an
27.9
27.5
27.0
exception
25.2
24.8
24.5
Lagarde and Isabel Schnabel in
23.3
25
23.1
Gender Balance
21.0
2019, the number of women on the
19.5
18.8
18.9
20
Index score,
board reached an historic high of
14.1
15 by region,
12.3
two (Figure 1). When Frank Elderson
11.3
11.3
2018-present
10.1
9.1
10
succeeded Yves Mersch on the Source: OMFIF
7.3
6.0
5.8
5 Gender Balance
board in December 2020, the ECB
Index 2021
missed an opportunity to improve its 0
Europe North America Latin America Africa Asia Pacific Middle East Global
gender diversity; the next vacancy is Caribbean
2018 2019 2020 2021
not due to come up until 2026.
In fairness to the institution,
the ECB itself has no say over who
makes up its governing council. NCB
governors are appointed by their ‘We want gender balance to be the norm now rather
respective national governments.
than a revolution to fight later. Let us not forget
Members of the executive board are
proposed by national governments that gender is one of the many dimensions of
and ultimately appointed with the diversity that we must all value. We should mirror
approval of the Eurogroup of euro the society we serve.’
area finance ministers and the Christine Lagarde, President, ECB
European Parliament.
Where the ECB can influence
diversity is with the appointments
and career paths of its staff,
from entry-level intakes to senior
management. In this area, there has
been greater improvement. Between
2013-19, the ECB more than doubled
the proportion of women in senior
management roles to 30% from 14%,
exceeding its target of 28%. Over the
same period the share of women in
overall management grew to 30%,
below the target of 35%.
In May 2020, the ECB went a
step further by launching a new
model for gender targets, aimed at
increasing the share of women at
the different levels from analysts
to senior management to between
40% and 51% by 2026, with interim
assessments in 2022 and 2024. The
targets are supported by a range
of initiatives promoting gender
diversity, including a scholarship
for female students of economics.
President Lagarde noted that ‘we
want gender balance to be the norm
now rather than a revolution to fight
later’.
Despite its overall slow progress,
the ECB still scores above the global
(weighted) average of 27, highlighting
just how far central banks are from
achieving gender balance. Overall,12 CENTRAL BANKS GBI 2021
Righting an economic wrong
Public policies are promoting gender balance objectives
Verónica Artola processes or behaviours that undermine it.
Additionally, the bank built a gender perspective
Jarrín
into its management framework for delivering
General Manager, products and services.
Banco Central del Furthermore, the bank allied with national
Ecuador and international organisations which promoted
these same goals. Among them is Rotary
International, an organisation that brings
REACHING gender balance requires effort together business and professional leaders
from all parts of society. In Ecuador, the central to foster humanitarian actions, with which it
bank is at the forefront in this regard. The promoted the training of businesswomen,
central bank’s senior management has strongly deepening empowerment and helping them
emphasised the need to reduce gender gaps achieve greater economic independence.
and has promoted many different policies to Similarly, the bank has established a
reach this goal. memorandum of understanding with UN
The bank subscribes to the Women’s Women, which will see both institutions act
Empowerment Principles, a joint initiative of the jointly towards building equality in the labour
United Nations Global Compact and UN Women. and social spheres by strengthening financial
These guide companies and organisations on inclusion.
how to boost gender equality and empower Women are still considered a vulnerable
women in the workplace. group of Ecuador’s population. The central
In accordance with these principles, bank played a key role in constructing the
extensive work has been carried out over the national strategy for
past three years. Events, seminars, workshops financial inclusion,
and meetings have brought together more ‘Events, which focuses on
than 5,000 people to help achieve the goal seminars, addressing this issue.
of gender equality. The consistent theme, The formal
looking at the economy through a gender
workshops financial system
perspective, was promoted in 24 events at and meetings must become more
national level, addressing female leadership, have brought gender-sensitive.
equity, empowerment and inclusion. In addition, together more This will increase
economic gender equality research was carried than 5,000 the opportunity
out, promoting respect for the economic rights for women to save,
of women. These actions aimed to transform
people to help receive, pay or borrow
the collective conscience of the country and achieve the small amounts of
contribute to the construction of public policies goal of gender money. That will make
which promote these objectives. equality’ a big difference in
Observing this, in August 2019 the technical households headed
secretariat of the Whole Life Plan recognised by women, with many
the central bank as a safe institution, free from living in precarious conditions without secure
violence against women. income, housing or food.
Framed by its commitment to gender parity, Advancing the economic rights and
the central bank laid out its equity and equality capabilities of traditionally neglected groups,
policy, which all employees must understand such as women, is an essential component
and subscribe to. This cements gender equality for poverty reduction and sustainable
as a vital goal for institutional action and the development. The central bank’s actions, aimed
foundation for its organisational culture. Gender at improving financial inclusion in Ecuador, also
equity and equality are promoted by detecting, contribute to growth, while, importantly, righting
preventing, prohibiting and eradicating a social and economic wrong. •omfif.org CENTRAL BANKS 13
Thinking deeply about gender
Diversity demands more than balancing the numbers
Dr Monique job descriptions. I challenge them to identify
where in our economy and society we are
Nsanzabaganwa
yet to establish gender equality. I push them
Deputy Chair, African to interrogate the evidence available and I
Union Commission, emphasise the need to understand why there is
former Deputy Governor, a gender gap.
National Bank of Rwanda Building gender into our vision and analysis
needs to be supported by entrenched
systems and procedures. From recruitment
IN 2016, alongside Women’s World Banking, I and procurement rules, corporate culture and
pushed for gender diversity in central banks to communications, management information
be part of the Denarau Action Plan. However, systems and IT tools, to our partnerships and
I had in mind something deeper than just an stakeholder engagements, there must be a
inclusive workplace. Balancing the numbers deliberate effort to remove the gender bias.
is necessary for achieving gender diversity Following the Denarau Action Plan, the
in finance, but it’s not enough. We must be NBR was quick to introduce changes. We
deliberate in the way we think, the processes we opted for the Gender Equality Seal. This is
use, the initiatives we promote and the strategies a United Nations Development Programme
we deploy. standard implemented in partnership with
Central banks have a responsibility to deliver the gender monitoring office in Rwanda. The
economic outcomes that benefit women and process involved an assessment of our policies,
men, boys and girls equally. They are influential structures and procedures and came up with
in creating and upholding gender equality in recommendations for areas to improve.
society and the economy. More important
There is growing evidence that gender diverse than a certification,
teams perform better. Bringing female and male we developed
perspectives together in work, analysis and ‘Gender equality a strategy that
decision-making increases the ability of central is not just places gender
banks to meet the expectations of stakeholders. a woman’s front and centre.
Having more women in leadership roles could We created a
business. Nor is
contribute to even better performance. gender committee
Closing the gender gap is a strategic issue
gender all about chaired by the
for central banks. There are many reasons women’ deputy governor.
for this. The International Monetary Fund and It is comprised of
others have found evidence of the benefits of male and female
gender inclusion in the economy. Increasing members to oversee the process of certification
women’s access to finance and including and create a gender-inclusive culture in the
women in the leadership of financial institutions bank.
have positive outcomes on financial stability. I have had the privilege to lead these efforts
Moreover, inclusive financial markets improve alongside a male governor that understands
the transmission of monetary policy. and promotes equality and inclusion. Gender
I am proud that the National Bank of Rwanda equality is not just a woman’s business. Nor is
performs well in these areas. We have achieved gender all about women.
gender parity on the board and executive As leaders, we must create an environment
teams. We continue to see more women in newly for men and women to deliver on outcomes that
recruited teams, giving us hope for the future of are economically beneficial to everyone. We
the bank. must ensure this is entrenched in our systems
Whenever I get an opportunity to talk to and organisational culture. It is the only way to
staff, I encourage them to look beyond their achieve gender equality sustainably. •14 CENTRAL BANKS GBI 2021
3. Island economies more likely to have women governors Europe is the best-performing region when it
List of central banks headed by women in 2021 comes to diversity in central banks, followed
Source: OMFIF Gender Balance Index 2021 by North America (Figure 2).
Africa, Asia Pacific and Latin America and
First in
institution's
the Caribbean have improved steadily and
Country/ Year Background/ the past year included several milestones in
Name history Training
institution appointed previous position
to be a all three regions. In Asia, the State Bank of
woman?
Vietnam appointed Nguyen Thi Hong as its
Cayman first female governor while Tokiko Shimizu was
Cindy Scotland Yes 2000 Central bank Economist
Islands the first woman to be appointed as executive
director at the Bank of Japan. In Africa,
Jeanette R. the Bank of Mauritius appointed a female
Aruba Yes 2008 Central bank Economist
Semeleer
deputy governor and two other women to its
Maiava Atalina board making it one of the most improved
Economist
Samoa Emma Yes 2011 Central bank central banks this year. The central banks of
and Lawyer
Ainuu-Enari
Venezuela, the Bahamas and South Korea also
Kansas City Business appointed women to their boards over the
Esther George Yes 2011 Central bank
Fed (US) administration past year.
The Middle East is the only region whose
Lesotho
Retselisitsoe
Yes 2012 Central bank Economist
score has fallen consistently from 11.3 in 2018
Matlanyane
to 5.8 this year. Of the 30 central banks which
scored zero, because they lacked any women
Seychelles Caroline Abel Yes 2012 Central bank Economist
in senior positions, nine are in the Middle East.
Israel has been an exception in recent years, as
Jorgovanka Member of it had a female governor and deputy governor
Serbia No 2012 Economist
Tabaković parliament
in 2018. However, both posts are now occupied
Russian Federation by men.
Russia Elvira Nebiullina Yes 2013 (aide to the Economist
president)
Diversity at the US Federal Reserve
Cleveland Mathematics ‘Watch your step, there’s busted glass. Janet
Loretta Mester No 2014 Central bank
Fed (US) and economics broke another ceiling’, wrote rapper Dessa in
her Hamilton musical-inspired ode to Janet
Financial
intelligence unit
Yellen, the former Federal Reserve chair who
(less than a year)
Commerce
President Joe Biden picked as his Treasury
Belize A Joy Grant Yes 2016 and before, minister secretary.
(undergrad), MBA
of energy, science
and technology, and Celebrating firsts and broken glass
public utilities ceilings can help improve gender diversity in
several ways. Role models inspire others to
Verónica Artola
Ecuador
Jarrín
No 2017 Central bank Economist envision the possibility of a successful career
in traditionally male-dominated fields. But,
North Anita Angelovska
Economist as with the election of Kamala Harris, who
Yes 2018 Central bank (undergrad)
Macedonia Bezhoska
and MBA
made history as the first female, first black
and first Asian-American US vice president,
San
it also draws attention to the chronic under-
Francisco Mary Daly No 2018 Central bank Economist
Fed (US) representation of women in public policy-
making. It raises the question: what can be
Datuk Nor IMF and previously
Malaysia Shamsiah binti No 2018 deputy governor at Accountancy done to correct this?
Mohd Yunus the central bank Yellen remains an exception in US central
Private sector (law banking. Across the 12 regional Feds, only
San firm and president three are led by women: San Francisco, headed
Catia Tomasetti Yes 2018 Lawyer
Marino of banks and listed
companies) by Mary Daly (read more on pg 18), Kansas
City, headed by Esther George, and Cleveland,
IMF managing headed by Loretta Mester. Diversity is lacking
ECB Christine Lagarde Yes 2019 Lawyer
director
beyond gender: Raphael Bostic (Atlanta) and
Neel Kashkari (Minneapolis) are the only non-
Marta Sabina
Cuba No 2019 Public sector Economist white presidents in the group of 12, in a country
Wilson González
where non-white ethnic groups make up about
Vietnam Nguyen Thi Hong Yes 2020 Central bank Economist 40% of the population. The Federal Reserve
Board is slightly more gender-balanced, withomfif.org CENTRAL BANKS 15
four men and two women. However, 4. Gender
Lesotho balance not
the chair and two vice chairs are men. Aruba
Look below the top ranks, though, just about
Norway
women
and the Fed is doing better than Belize
Cayman Islands GBI score for
many others. For the first time, we
Serbia central banks
examined the diversity in senior that miss out on
Kansas City Fed (US)
positions at the regional Feds. Seven Maldives balance because of
out of 12 scored above 70, putting Seychelles overrepresentation
of women in top
them in the top 20 central banks Cuba
Bosnia & Herzegovina
positions
globally. The Richmond Fed gets a
Albania Source: OMFIF
perfect score of 100, the first central Gender Balance
Ecuador
bank to achieve this in the history North Macedonia Index 2021
of our index. The central bank is led 0 10 20 30 40 50 60 70 80 90 100
by a male president, has a female
vice president, a balanced executive
committee and a diverse board of
directors. Even the system’s worst ‘We should not be rigid consistent trend in our index: smaller
performer, the Boston Fed, gets countries are more likely to have
about these things,
a score of 29, above the global more gender-balanced top teams.
(weighted) average. but if a body of people Six out of this year’s top 10 scorers
A Brookings study in 2019 found looks uniform, it might (excluding the regional US Feds) are
that the share of female economists suggest it is less open in countries where gross domestic
at the Fed has been roughly steady to considering a range product is less than $10bn. Spain is
at around 24% since 2013, with the only large economy to feature in
of views on important
improving gender diversity at the the top 20. In contrast,
regional Feds offset by worsening decisions’ G20 economies tend to do less well:
stats at the Fed Board in Washington. Ben Broadbent, Deputy only Russia, Australia and Germany
In aiming to improve diversity, Governor, Bank of England earn a score above 50 (Figure 5).
the Fed – like many other central This is not surprising if we consider
banks – cannot legally hire based one of the core motivations for
on gender. Instead, strategies to diversity is to make the best use
improve outcomes have focused of the talent pool. In countries
on smarter recruitment techniques, with small populations this need is
such as unconscious bias training and Cayman Islands, the Seychelles even more acute, sharpening the
strategies to attract a broader pool and Cuba have female governors. incentives to widen the net when
of applicants (see page 28). The St. Several of these are also on this recruiting.
Louis Fed also organises an annual year’s list of central banks that have a Diversity at the top levels also
‘Women in Economics’ conference positive female bias, with an over- helps to widen the talent pool. As San
and runs a ‘Women in Economics’ representation of women in senior Francisco Fed President Daly rightly
podcast offering mentorship to positions (Figure 4). notes, ‘if young people don’t see
young economists who want a Overall, the relationship between leaders who look like them at the top,
career in central banking. This year’s population size and gender diversity they’ll choose another path – and we
conference included sessions such as in senior positions has been a miss out on that talent’ (see page
‘A day in the life of a Federal Reserve
economist’ and ‘What can I do with
a Bachelor’s or Master’s degree in Russia 5. G20 lags on
Economics?’ Australia gender
Germany
Indonesia GBI scores of G20
The importance of (small) size France
economies, 2021
South Africa
Europe’s high marks largely reflect US Source: OMFIF
strong diversity in non-euro area UK Gender Balance
Argentina
countries, particularly in the Balkans Brazil
Index 2021
and former Soviet Union. Russia, Italy
Mexico
Serbia and North Macedonia are Canada
Japan
three of the 18 central banks in the Turkey
world with a female governor (Figure India
South Korea
3). Small island economies also China
tend to do well on gender balance: Saudi Arabia
0 10 20 30 40 50 60 70 80
the central banks of Aruba, Samoa,16 CENTRAL BANKS GBI 2021
Triggering cultural change
Quotas defy bias and stereotypes
Despite policies aimed at supporting women
Alessandra
and reconciling work and family duties, we
Perrazzelli have a mostly male workforce and women are
Deputy Governor, still underrepresented at senior levels. We are
Banca d’Italia working to identify and address shortcomings,
with invisible barriers being the most difficult to
overcome.
While culture evolves slowly, some
WORKPLACE diversity and inclusion, at all levels circumstances and actions can trigger a more
and in all fields, is important for the functioning of rapid change. For example, the pandemic has
organisations, societies and economic systems. shown that more flexible working is possible, with
The issue of gender diversity has always been a stronger focus on performance rather than
at the core of my own experience and career. time.
When I first joined the banking sector, almost This change of perspective can help to
35 years ago in New York, I was the only woman overcome barriers that prevent women from
among the young Italian bankers and one of very reaching management positions. However, such
few overall. work arrangements need to be managed carefully
Since then, the presence of women in the to avoid effects that may exacerbate rather
financial sector has grown significantly, but still than alleviate gender disparities, such as women
too few reach top managerial positions in private working from home and men at the workplace.
and central banks. Finance remains one of the Building networks of female professionals
most male-dominated sectors worldwide. can help to promote
In Italian private banks, women represent an inclusive culture
around 17% of directors and only 1% of these are ‘While culture in organisations.
CEOs. This is a major improvement compared to evolves ValoreD, a network
25 years ago, when the share of women among slowly, some of firms that I
bank directors was less than 1%. This progress cofounded in
circumstances
was largely due to the affirmative action policies 2009 with 11 other
adopted in 2011 and 2012 that imposed minimum and actions can managers, now
quotas of gender representation in the boards trigger a more counts over 200
of listed banks. Following the adoption of these rapid change. firms in Italy engaged
rules, the share of women on Italian bank boards For example, the in achieving gender
has grown to 40%. balance.
pandemic has
Women still face obstacles that slow their Affirmative action
career progression. They are typically more shown that more policies, like gender
involved in care duties, devoting less time to their flexible working quotas, have helped
careers. Having children has long-term impacts is possible, with an unprecedented
on women’s pay and progression. Strong gender a stronger focus number of women
stereotypes persist: leadership and decisiveness in their careers.
on performance
are still seen as male qualities. Seeing women in
Cultural values assign men and women rather than time’ senior positions can
different roles in society and in the labour market. inspire young women
This is particularly true in Italy where the debate to pursue ambitious careers and mentoring
on gender diversity has only recently come to the initiatives can prevent women from shying away
fore. It is not surprising that Italy has not yet had from competition.
a female president of the republic, prime minister, We need to turn the spotlight on implicit
central bank governor or minister of economy gender bias and stereotypes, and the common
and finance. belief that women cannot pursue a rewarding
This delay is reflected in the Bank of Italy too. career and have a family at the same time. •omfif.org CENTRAL BANKS 17
6. Just one in 10 central bank a few months later
central banks to become dean of the University
headed by a
84% of Toronto’s Rotman School of
woman At least one senior executive or board member
Management. Wilkins may follow the
Levels of female same pattern: she has chosen not
presence in central 39% to seek a second term as deputy
banks, by seniority Governor or Deputy Governor governor, and is young enough to
Source: OMFIF
Gender Balance aspire to a comeback as governor
Index 2021
35% when Macklem’s term expires in 2027.
Deputy Governor
The time to act is now
10% Reports such as the GBI help to
Governor highlight that central banks can and
should do better when it comes to
ensuring they honour, reflect and
benefit from the diversity of the
populations they serve. There is
18). Here, central banks are making increasing recognition of this in the
‘If left unaddressed,
progress, with the number of women central banking community itself.
in governor positions at an all-time
these barriers [causing Over the past eight years in which we
high. But, out of the 18 women to gender imbalance] have published this annual report, 44
head a central bank, 12 were the first will continue to individuals – men and women – from
women in their respective institutions culminate in self- 30 central banks, from all across the
to occupy that position (Figure 3). world, have joined us in advocating
fulfilling expectations,
for the benefits of diversity. Many
Hard way to the top perpetuating the institutions are responding to the
The most common path for women flawed belief that challenges by putting in place
to attain the job of governor is to rise women are less suited initiatives and policies to improve
up the central bank’s ranks. Of the 18 to succeeding in the outcomes (see page 28-38).
female governors, 11 were promoted The Covid-19 crisis has shifted
profession than men’
from within the central bank and 12 central banks’ focus onto policies
Isabel Schnabel, Executive
are economists by training (Lagarde to protect the economy from the
Board Member, ECB
being an exception on both fronts). effects of the pandemic. But while
But a long and distinguished attention is on new accommodative
career at the central bank does not monetary policy measures and
guarantee promotion to the top job. lending operations, central banks
This is partly because senior women should not fall behind on measures to
in central banking tend not to have correct the lack of diversity.
the more public or finance-focused guarantee promotion to governor. At times of crisis, diversity
roles that typically lead to promotion During the past year, 31 new central matters more than ever. Reflecting
to the top post. The databank behind bank governors were appointed. on the potential factors behind
this year’s GBI research covers Only one was a woman – in Vietnam. the 2008 financial crisis on an
2,532 individuals employed in senior In six cases, a man was recruited to OMFIF podcast in 2019, Central
positions across 185 institutions take over as governor even though Bank of Ireland Deputy Governor
(see page 67). Analysis of a random there were women already in the Ed Sibley highlighted how system
sample of 25 institutions showed that position of deputy governor. This failings related to group-think
women in executive roles are more made headlines in Canada, where and insufficiently challenged
likely to head human resources and Senior Deputy Governor Carolyn assumptions contributed to the
other administrative directorates. In Wilkins lost out in the final shortlist depth of the crisis through poor
16 of these 25 institutions, the head to replace outgoing Governor risk management and decision-
of such directorates was a woman, Stephen Poloz in April 2020. Tiff making. Paraphrasing Lagarde,
in stark contrast to the gender Macklem, a former deputy governor, diverse teams tend to do a better
imbalances we document in wider is the 10th white man in a row to job. Similarly today, central banks
central bank senior management. become the Bank of Canada’s and the governments who appoint
This year’s research found that governor since the central bank’s them have a responsibility to ensure
just over one-third of central banks formation in 1934. Macklem himself that our economies and societies
have a woman in the position of had been senior deputy governor benefit from the strength of diverse
deputy governor (Figure 6). But even when he lost out on the governor leadership at times when this is
being deputy governor does not post to Poloz in 2013 and left the needed the most. •18 CENTRAL BANKS GBI 2021
IN CONVERSATION
Raising standards
to build better teams
Mary C Daly, President of the Federal Reserve Bank of San Francisco, speaks
to OMFIF’s Danae Kyriakopoulou about diversity in leadership and the impact
of Covid-19 on the gender debate.
Danae Kyriakopoulou: Of 185 central banks and business sectors less competitive. If young
globally, only 18 are headed by a woman people don’t see leaders who look like them at the
and one in six have no women at all in senior top, they’ll choose another path and we miss out on
management. What do you see as the root of that talent.
the problem when it comes to gender diversity
in central banking? DK: A common objection is that measures to
Mary C Daly: Too often, leaders and organisations improve diversity are constraining and may lead
talk about the importance of diversity and inclusion to lower standards. How would you respond to
but don’t actually move the needle. So, the root this criticism?
of the problem is recognition without action. To MCD: That may be a common objection, but
achieve better diversity in central banking, we must it’s one that is rooted in faulty assumptions and
make a firm commitment to reflect the people we systemic biases. Efforts to improve diversity aren’t
serve, hold ourselves accountable with concrete constraining – in fact, they broaden what we’re
goals and stay the course until we deliver tangible, able to achieve. By widening our search to include
measurable results. traditionally overlooked
What does that look like? It starts with building ‘We all do better talent pools, we are only
a stronger pipeline of talent and not just when increasing the odds that
we have a specific job or slot to fill. Once you
when we all do the person with the next
get talent in the door, you need to nurture it – so better’ big idea is in the room.
building a strong culture of mentorship is key. We’re not lowering our
Lastly, if you want a diverse workplace, you need standards to achieve decorative diversity. We’re
to implement policies that support it, like adequate raising our standards to build even better teams
paid family leave. – diverse groups of people with a wide array of
talents and ideas.
DK: How concerning is this lack of diversity
in central banking? The benefits to society DK: With economies continuing to be hit by the
in terms of representation are perhaps more Covid-19 pandemic, many reports have shown
straightforward, but what are the potential women and minorities to be disproportionately
gains for institutions that could encourage impacted by the crisis and at greater risk of
them to take action? unemployment and income loss. What role can
MCD: Diversity in central banking isn’t a ‘nice to central banks play through their crisis response
have’ – it’s essential. Without it, we damage our measures to address this and how can they
credibility and our ability to achieve our goals. To contribute to ensuring that the recovery is
deliver the best possible outcomes, we need the inclusive and sustainable?
best minds and the best ideas around the table. If MCD: Central banks must do their part to ensure
we don’t fully represent the people we serve, we’re the economic damage caused by Covid-19 doesn’t
going to deliver incomplete solutions to today’s leave a permanent scar. We know that the costs
most pressing economic challenges. of this virus are not being borne equally. Many
A lack of diversity also makes our organisations mothers with children at home have had to quitomfif.org CENTRAL BANKS 19
‘By widening our
search to include
traditionally
overlooked talent
pools, we are
only increasing
the odds that the
person with the
next big idea is in
the room’
their jobs to provide schooling and childcare. them until our policies reach all Americans.
People of colour and low- and moderate-income
communities across the US have seen a frightening DK: The pandemic has reintroduced debates
decline in income and wealth while their basic around trade-offs between prioritising the
needs have increased. economy against other objectives, in this case
Central banks have a responsibility to continue health. Do you see a similar trade-off when it
accommodative comes to diversity and inclusion? Are these values
policy until we’re that we should aspire to because of or despite
‘We’re only
able to ensure economic considerations?
achieving our goals a truly inclusive MCD: This idea of trade-offs is a false narrative
if the economy lifts recovery. The that assumes a zero-sum game. We live in an
everyone up’ Federal Reserve’s interconnected world, which means we all do better
new monetary when we all do better. In much the same way that
policy framework we can’t have a healthy economy without a healthy
recognises this in how it addresses maximum population, we can’t have a healthy economy without
employment. We are committed to not just using diverse, inclusive opportunities. We’re only achieving
every tool at our disposal but continuing to use our goals if the economy lifts everyone up. •You can also read
