Central Bank takes aim at the lack of gender diversity in Irish firms

Women made up less than a sixth of applicants for roles where the holders are responsible for driving strategy or business revenue

Female applications for board positions fell by two percentage points from 24% in 2019 to 22% in 2020. Picture: Bloomberg

The Central Bank said there has been a disappointing lack of progress in gender diversity at senior levels of regulated Irish firms.

Of the 3,600 applications for approval to occupy senior roles within regulated firms in Ireland last year, just over one in four were from women with little change from 2019.

The Central Bank also said less than one-sixth of applicants for roles where the holders are responsible for driving strategy or business revenue were female. “It is disappointing to see that progress is so slow and has, in some respects, stalled in 2020," Ed Sibley, Deputy Governor at the Central Bank said.

“A lack of diversity at senior management and board level is a leading indicator of heightened behaviour, culture and governance risks. As diversity is so interconnected with risk, resilience and financial performance, it will continue to be a priority for the Central Bank.

According to the Demographic Analysis Reports, men hold 85% of current positions that require approval in the asset management sector, 78% in the banking sector and 74% in the insurance sector.

There also continues to be a pronounced gender imbalance at board level across all sectors. Female applications for board positions fell by 2 percentage points from 24% in 2019 to 22% in 2020.

The majority of applicants for approved roles were Irish (64%), with UK nationals holding the second largest portion of applications (16%), falling from 18% in 2019.

“Improving diversity and inclusion in order to reduce the likelihood of groupthink, improve decision-making and manage risks is even more important as we strive to deal with the complex and unequal effects of the pandemic," Mr Sibley said.

"It is in times of change and uncertainty when qualities such as resilience and innovative thinking are essential, and the value of diversity of background, thought and experience are all the more important."