Strong diversity and inclusion (D&I) practices by financial institutions can support “core prudential objectives” by improving the quality of corporate governance of regulated financial institutions, according to Switzerland-headquartered Bank for International Settlements (BIS). The report examines emerging regulatory approaches informing financial institutions’ D&I practices. There has been “notable progress”, both in improving firms’ internal D&I practices and external dealings with customers, the report said. However, regulatory approaches “vary significantly” across jurisdictions, BIS said, with some placing the emphasis on the diversity of decision-makers within firms, others on advancing broader social justice policies, whereas some jurisdictions are focused on customer-related issues from the perspective of the accessibility of financial services. “It might be worthwhile for financial regulators to consider consolidating these disparate regulatory issuances, to have a coherent regulatory framework covering all D&I aspects that matter for financial institutions. Firms themselves would benefit from such a holistic approach to D&I,” the report said.
Embracing the full spectrum of #DiversityandInclusion can support prudential objectives #FinancialStabilityInstitute https://t.co/VSV3nGmHbj pic.twitter.com/fvqm6yc5Jh
— Bank for International Settlements (@BIS_org) May 24, 2022