The proportion of women in top roles at major financial institutions has reached a record high. Still, it shows signs of stagnation, with further progress under threat as several countries, led by the United States, retreat from diversity and inclusion initiatives, according to the latest Gender Balance Index released by the London-based OMFIF think tank.
The report, published on Wednesday, found that 16% of leadership positions at central banks, commercial banks, and sovereign and pension funds are now held by women — a historic peak, though only marginally higher than last year. Women make up 32% of all senior roles, a modest one-point increase, while the overall gender balance index stands at 42 out of 100, described as “less than halfway to gender parity”.
The report highlights a growing risk to gender equality as the U.S. government under President Donald Trump dismantles diversity, equity and inclusion (DEI) programmes across federal agencies and encourages the private sector to follow suit. “While the U.S. has been most vocal in this retreat, there is evidence of contagion on a global scale, with institutions in Asia and Europe also rolling back policies,” the report stated.
Despite the broader headwinds, some gains were recorded. Sovereign wealth funds saw the largest year-on-year improvement, with their gender balance index score rising to 38 — double the level recorded in 2021 — largely driven by emerging markets. Central banks also hit a milestone, with a record 30 female governors now in post, and commercial banks posted their strongest index gains since joining the report in 2021.
However, the advancement of women into executive ranks remains sluggish. The proportion of women in C-suite roles increased from 15% to 19%, yet nearly half of the commercial banks surveyed still have no women at the executive level. The share of female CEOs remains under 15%, with just one woman appointed last year compared to nine men. Pension funds also saw a decline, with female C-suite representation falling to 28% from 31%.
OMFIF warned that recent developments in the U.S. could jeopardise these fragile gains. Six of the country’s largest banks — including JPMorgan, Goldman Sachs, and Citi — have begun scaling back their DEI programmes. “Although it is too soon to say what implications this rollback will have on gender balance, given the instability in its pipeline, it is likely that North America may not remain the highest-scoring region in the future,” the report concluded.
