Women have reached a new milestone in financial leadership positions, claiming 19% of executive roles at major banking and financial institutions globally, according to fresh research released this week.
The latest Gender Balance Index from London-based think tank OMFIF analyzed 335 financial organizations and found female representation in top positions increased from 16% the previous year. The Federal Reserve contributed to this growth, with six women now heading regional banks within the U.S. central banking system.
However, the path toward equal representation remains lengthy. The study’s overall rating of 44 out of 100 points demonstrates that true gender parity is still far from reality.
“Even with the rate of improvement seen in recent years, it would still take 22 years for the GBI score to reach an average of 100,” stated Andrea Correa, who authored the research. She noted the timeline could extend even further.
The findings proved particularly encouraging in North America, where scores climbed to 82, especially considering current political efforts to scale back diversity and inclusion initiatives under President Trump’s administration.
“It was a little bit of a surprise,” Correa commented. “Institutions have had to be more careful with their public messages (about equality), but they are still committed to it.”
Central banks showed the most dramatic progress, with 35 of the 185 institutions studied now operating under female leadership – an all-time high. Sovereign wealth funds also demonstrated significant advancement, increasing their percentage of female chief executives to 18% in their strongest showing in five years.
Commercial banking institutions showed minimal advancement, however, with only seven women serving as CEOs among the 50 banks examined. Pension fund leadership actually declined slightly, dropping from 12 to 11 female heads.
The research revealed concerning gaps in leadership development pipelines. Women’s representation in executive C-suite positions remained stagnant at 20%, while nearly half of commercial banks surveyed maintain no female presence in their top leadership teams.
Researchers introduced a new “glass ceiling ratio” measurement, calculating how women’s representation diminishes at institutional peaks. The 0.56 rating indicates women hold top positions at just over half the rate their overall leadership representation would predict.
Commercial banks scored lowest at 0.41, showing higher-than-average female senior leadership but below-average representation in chief executive roles.
“There is still a ceiling for women,” Correa explained, pointing to demanding work schedules required for top positions. “That is often difficult for women because of child care and their role in households,” she described as a “persistent promotion bottleneck.”
