Banking on Women Leaders: A Case for More?

39 Pages Posted: 16 Oct 2017

See all articles by Ratna Sahay

Ratna Sahay

International Monetary Fund (IMF) - Developing Country Studies Division; National Bureau of Economic Research (NBER)

Martin Čihák

International Monetary Fund (IMF)

Papa N'Diaye

International Monetary Fund (IMF) - Asia and Pacific Department

Adolfo Barajas

International Monetary Fund (IMF) - Western Hemisphere Department

Annette J. Kyobe

International Monetary Fund (IMF)

Srobona Mitra

International Monetary Fund (IMF)

Date Written: September 2017

Abstract

Using a new dataset, we measure the large gap between the representation of men and women in leadership positions in banks and bank supervision agencies worldwide. Women occupied less than 2 percent of bank CEOs positions, and less than 20 percent of the board seats in more than 80 percent of the observations across banks over time. Contrary to common perceptions, many low- and middle-income countries have a higher share of women in bank boards and banking supervision agency boards compared to advanced economies. Econometric analysis suggests that, controlling for relevant bank and country-specific factors, the presence of women as well as a higher share of women on bank boards is associated with greater bank stability, as represented by higher z-scores and lower nonperforming loan ratios. We also examine the share of women on boards of banking supervision agencies by compiling a new dataset. We find that it is associated with greater bank stability. Further research is needed to identify specific mechanisms through which these stability benefits are achieved, and to understand the conditions that have facilitated entry of women into leadership roles in banks and supervision agencies.

Keywords: Bank supervision, Banking, Gender, board of directors, General, Economics of Gender

JEL Classification: G30, G34, J16

Suggested Citation

Sahay, Ratna and Cihak, Martin and N'Diaye, Papa and Barajas, Adolfo and Kyobe, Annette J. and Mitra, Srobona, Banking on Women Leaders: A Case for More? (September 2017). IMF Working Paper No. 17/199. Available at SSRN: https://ssrn.com/abstract=3053197

Ratna Sahay (Contact Author)

International Monetary Fund (IMF) - Developing Country Studies Division ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-7181 (Phone)
202-623-7271 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Martin Cihak

International Monetary Fund (IMF) ( email )

700 19th Street N.W.
Washington, DC 20431
United States

Papa N'Diaye

International Monetary Fund (IMF) - Asia and Pacific Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Adolfo Barajas

International Monetary Fund (IMF) - Western Hemisphere Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-4152 (Phone)
202-623-6070 (Fax)

Annette J. Kyobe

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Srobona Mitra

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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