Paschal Donohoe says the Central Bank may take action if diversity at banks doesn't improve

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Paschal Donohoe says the Central Bank may take action if diversity at banks doesn't improve
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About 80% of senior appointments in recent years were men

Image: Shutterstock Image: Shutterstock THE MINISTER FOR Finance has said the Central Bank may be forced to take action if there is no improvement in diversity in the senior posts at Irish banks.

The minister added that improving diversity in financial institutions can: “mitigate the risk of groupthink, improve decision-making, increase the effectiveness of internal challenge and enhance firm culture.” The Central Bank’s diversity and inclusion assessment looked at applicants and appointments to financial institutions that require its approvalIn the most senior roles the gap was even more stark, with women comprising just 12% of applicants to the boards of Irish financial institutions.

In the assessment, the authors noted a lack of diversity can lead to “the risk of over-confidence in decision-making” and a “reluctance to change”.

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