140 years to achieve gender balance in leadership
Men’s dominance at the top of central banks and financial institutions is unlikely to change any time soon. OMFIF’s Gender Balance Index 2023, now in its 10th edition, finds that, at the current rate of progress, it will take 140 years to achieve parity between men and women in leadership positions in the industry.
The 2023 GBI scores reinforce the message of slow-going progress. The scores are determined by the share of women and men in senior positions, with higher weights given to top positions such as governor or chief executive. A score of 100 means an organisation has achieved perfect 50-50 gender balance.
All institution groups advanced their scores in the past year by 1-2 points. Pension funds continue to outperform with an aggregate GBI score of 50 out of 100 – meaning they are just halfway to achieving gender parity. The global score for commercial banks and central banks is less than 40, and only 23 for sovereign funds(Figure 1).
Figure 1: Improvement in gender balance across all institutions
Aggregate GBI scores (100 = perfect gender balance)
Note: Commercial banks were included in the index from 2021 onwards. The sample of pension and sovereign funds included in the index changed in 2022 to cover 50 of the largest institutions by AUM.
For the 2023 report we surveyed 46 central banks on their gender-related human resources practices. There was no direct causality between various policies and a better GBI score. But it was notable that central banks with worse GBI scores now than in 2018 were far less likely to have dedicated resources to gender balance, mentorship programmes or policies to ensure equal pay.
Interviews with six financial industry experts all revealed the ‘childcare tax’ as a major hurdle to women’s progress. Cultural biases were mentioned too, suggesting that the key to success is less tangible – perhaps it as much about attitudes as anything, in an institution as well as the country or society in which it operates.
