Women Representation on Boards of Directors of Commercial Banks in Bangladesh: Recent Trends and Best Practices

Abstract

Gender is at the forefront of corporate board diversity. Experts have always seen that women directors significantly influence the board’s working style and processes and, consequently, firm performance, especially in financial institutions. Globally, governments emphasized gender diversity to improve corporate governance following the financial crisis in 2008. A growing body of research has explored gender diversity in corporate governance, focusing on single-country and cross-industry analysis, excluding the specific sector. The objective of the study is to examine the most recent status of women’s representation on the boards in the Bangladeshi banking sector. Also, this study investigates the best practices and initiatives to promote gender diversity on boards around the globe in order to improve diverse boards in the banking sector. In a survey among the 24 commercial banks from 2009 to 2020, the study found that only nine to twelve percent of female directors were represented on the banking boards. During the last decade, the trends of women’s participation on board were not improved significantly in the industry. The study results have important implications for board governance and diversity theories.