A new report from the Central Bank shows that gender diversity at senior levels in the regulated financial services sector is increasing but still remains insufficient.
The Central Bank's latest Demographic Analysis Report reveals that female representation in applications for so-called "Pre-Approval Control Function" (PCF) roles last year stood at 31%.
This compares to a rate of 16% in 2012, the first year for which data was available.
There are 53 Pre-Approval Controlled Functions, covering both board and management level appointments. The positions include chief risk officer, chief operating officer, the head of finance, the head of internal audit, the head of claims and head of investment.
The Central Bank noted that about one in six applications received in 2012 were for women, compared to just under one in three in 2021.
Meanwhile, female representation for board level positions in financial firms increased by 6 percentage points from 22% in 2020 to 28% in 2021.
The most significant increases were seen in the asset management sector (from 31% female board representation in 2020 to 39% in 2021) and credit union sector (from 31% female board representation in 2020 to 36% in 2021).
But the Central Bank said that male applicants still continue to dominate revenue generating roles.
Less than one sixth of applicants of incumbent role holders responsible for driving business revenue were female last year as male applications still continue to dominate these roles.
The Central Bank also noted that existing regulated firms continue to show higher levels of gender diversity than new firms seeking authorisation.
Derville Rowland, Director General of Financial Conduct at the Central Bank, said that while it is encouraging to see progress, it has been incremental over a decade, and firms simply must speed up on the issue of gender diversity.
"We remain of the view that a lack of diversity at senior management and board level is a leading indicator of heightened behaviour and culture risks," Ms Rowland said.
She also said that diversity extends beyond gender.
"Diversity, including age, ethnicity, educational and professional background, amongst other characteristics, is critical to developing an effective culture," she said.
"Higher levels of diversity of thought can mitigate the risk of groupthink, improve decision-making, and increase the effectiveness of internal challenge and openness to change within firms. This is vital in terms of firms acting in the best interests of consumers and investors," Ms Rowland stated.
"Given that diversity is so interconnected with risk, resilience and financial performance, it will continue to be a priority for the Central Bank," she added.
