The Managing Director of the International Monetary Fund and the former Trade Minister of France, Christine Lagarde, has called has called for all financial institutions around the world to be more inclusive and appoint more women in top positions. She said that financial institutions should function in a way that is less risky and more inclusive by appointing more women to leadership roles.
“One clear solution is to set a strong tone at the top of the institution – establishing a culture where ethical behaviour is rewarded and where lapses in ethical integrity are not tolerated,” she said, adding, “More women leaders would also help. Several studies have shown that female leadership is more inclusive,” according to a report by AFR Weekend.
Lagarde further pointed out that 42 per cent of women across the world lack access to basic financial services, with less than 20 per cent of board positions being occupied by women in banks, and with just 3 per cent of them being CEOs. She added, “Financial inclusion is particularly important for women, empowering them economically, and allowing them to invest in education,” stated a Telegraph report.
The finance industry, everywhere in the world is highly male-dominated and Lagarde believes that the culture in financial institutions is “of compensation based on short-term gains rather than sustainable profits”. This she believes can be changed if employers move towards compensating their employees based on the long-term performance. The woman who once asked: “What would have happened if Lehman Brothers had been Lehman Sisters?” also said that women are not big on unnecessary risk-taking; their involvement on the top could radically help the financial industry.
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