The Central Bank threatens gender quotas if the banks fail to increase the variety

  • The Central Bank threatens gender quotas if the banks fail to increase the variety
    Independent.t. E.
    The Central Bank will consider introducing quotas if there is more diversity in top Irish banks.
    https://www.independent.ie/business/irish/central-bank-threatens-gender-quotas-if-banks-fail-to-boost-diversity-37220388.html
    https://www.independent.ie/business/irish/article37220386.ece/cf1ee/AUTOCROP/h342/2018-08-16_bus_43305904_I1.JPG

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The Central Bank will consider introducing quotas if there is more diversity in top Irish banks.

Deputy Central Bank Governor ed Sibley noted the low levels of diversity increase the risk of “overconfidence in decision-making, the lack of an internal problem and excessive resistance to external challenges and resistance to change”.

Speaking to the newsletter of the ECB, he said that he prefers that the banks would like to increase the diversity. “However, if diversity does not increase at senior levels, the Central Bank will consider whether further specific requirements should be introduced”, – he said.

Said Mr. Sibley, the Central Bank does a “deep dive” on the levels of diversity in Irish banks this year.

He said that “for most of the criteria” lack of diversity at a high level in Irish banks.

“The aspect progress that has been made at the level of the Supervisory Board is not reflected at Executive level/management. The gender imbalance at higher levels is even more pronounced in those roles that generate revenue and business development such as CEO, CFO, heads of trading, and so on. Over the past six years 94pc of appointments to these roles have been awarded to men, as a rule, people with similar stories and experiences.”

Among the relatively few women in the top tier Irish Bank Francesca McDonagh, Director of the Bank of Ireland, while Ulster Bank intend to appoint Jane Howard, to bring him here. Said Mr. Sibley, his goal was to encourage the variety of thoughts and viewpoints, not just proportional representation of different demographic groups. The Central Bank expects that the boards of banks and the management should create diversity and integration policies, which are subject to annual review and discussion, ‘ said Mr Sibley.

Answering the question about the financial performance of the sector, said Mr. Sibley Irish banks emerge from the crisis with more sustainable profitability.

“Balance sheets are stronger funding profiles to more stable and there has been significant improvement in many other areas – including very significant reductions in non-performing loans. But there’s more … I have already said that the Irish banking sector needs to make sure that the holes in the roof from the last storm are eliminated long before another set of storm clouds appears on the horizon.

“This is particularly important in Ireland, given the openness of the economy and its highly cyclical nature. These factors contributed to our decision to raise the countercyclical capital buffer in Ireland in 1pc, in order to further increase stability in the system.”

Said Mr. Sibley, banks should invest in technology to meet changing customer desires and protecting from cyber attacks. He said that the group-think in the financial, political and regulatory systems contributed to the depth of the crisis, adding that it was one of the reasons why the Central Bank wants to emphasize the diversity of thought.

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