An Overview of Legal Measures, Voluntary Rules, Indexes, and Certifications Concerning Gender Diversity in the Banking Industry

The chapter opens by exploring the growing attention to gender diversity and its main drivers in the financial system, primarily in the banking sector. It first analyses the reasons behind the strong focus on gender diversity in this system, linked to the so-called group-think (considered one of the main causes of the 2007–2008 financial crisis) and the related “Lehman Sisters Hypothesis”. The chapter then outlines initiatives and legal measures aimed at disseminating the culture and practice of gender equality. Detailed reference is given to CRD IV and CRD V: CRD IV deals with the criterion of diversity in its broader acceptation (in terms of gender, age, geographical origin, professional background, and so on) in relation to the recruitment and composition of governing bodies; CRD V deals with gender-neutral pay policies. Section 3 provides a detailed overview of the so-called hard gender quotas, which are compulsory by law, and the “soft” quotas, which are not compulsory by law but rather stem from self-regulatory initiatives. Section 4 describes requirements for disclosing information on gender diversity, with specific reference to the Global Reporting Initiative standards. The chapter closes with Sect. 5, which describes indexes that track the performance of companies committed to supporting gender equality and provides details on gender parity certifications and the Women’s Empowerment Principles, with mention of some of the financial companies involved.