Bank under fire for lack of diversity

BoE

The Chancellor has taken on the task of the Deputies about the lack of diversity at the top of the Bank of England.

Nicky Morgan has written to Philip Hammond, asking for evidence that “all the efforts” that are undertaken to promote gender and ethnic diversity in its recruitment process.

The Treasury of the selection Committee of the concern that follows two recent appointments to the Bank, the rate-setting committee.

Silvana Tenreyro is now the only woman on the Monetary Policy Committee (MPC).

She replaced Kristin Forbes, while the lieutenant governor, Sir Dave Ramsden fills the other vacancy on the MPC.

That seat had previously been filled by Charlotte Hogg, who replaced Minouche Shafik in February. However, Ms Hogg resigned the following month by not declaring that his brother worked for Barclays, which is considered a conflict of interest.

Ms Morgan has asked the Chancellor for “the confirmation that all efforts are made to encourage a diverse range of candidates as possible,” and that the selection processes for the Bank’s policy committees followed the same rigorous standards used for other public offices.

The letter asked the Treasury to publish recent data, including a breakdown by sex of the candidates seeking a seat on the MPC and the Financial Policy Committee.

Ms Morgan said that his committee wanted to hear evidence from Mr Hammond, or to another minister or high-level official on the subject.

BoE

Mark Carney, the Governor of the Bank, told the Treasury committee this week that the number of women in senior positions in the Bank had increased in recent years.

However, he admitted that there was a gender pay gap in Threadneedle Street because, “there are a lot of men that there are women” in senior positions.

He said the measures taken to improve the diversity includes staff training on “unconscious bias”, blind panels, promotions, and recruitment of a wide range of disciplines in the economy, which tends to be more masculine.

Sir Dave told Mps on the Treasury committee was not a “real problem with the gender balance in the economy.

“It’s a two-thirds male, one third female. The problems go all the way back to the school – why girls don’t do One at the level of the economy, why the young women are not going to study economics at university?”

He said that the theme was “collectively” to organizations, including the Treasury, the government and the Bank of England to the address.

This week, the Treasury committee has opened an independent investigation into the barriers that women face in entering and progressing in the financial services industry.