Commission finds credit institutions and investment firms still should improve diversity on boards

Diversity in the management bodies of credit institutions and investment firms can still be improved, finds a European Commission report published today. Only around one third of the institutions in the sample had a diversity policy in place, and only around one fifth of their board members were women.

This is the first reporting on diversity practices since the Capital Requirements Directive introduced a number of diversity requirements in 2014. Requirements include mandatory diversity policies and, for larger companies, setting a target for the underrepresented gender. The Commission looked at whether management bodies are diverse in terms of age, gender, geographical provenance, educational and professional background, and whether firms have put in place a policy promoting such diversity.

Diverse management goes together with enhanced scrutiny and risk oversight and is a confirmed way to improve the way financial institutions are managed. The report was conducted by the European Banking Authority earlier this year. It included 873 institutions from 29 European Union and European Economic Area Member States. In order to observe the full effects of the Capital Requirements Directive measures the Commission recommends to repeat this report at least every three years.

For more information

Report on benchmarking on diversity practices under the Capital Requirements Directive 

Rapport sur l’analyse comparative des pratiques en matière de diversité en vertu de la directive

Bericht zum Vergleich der Maßnahmen zur Förderung der Diversität gemäß der Richtlinie