AABD Seeking Guidance from OCC on Diversity Requirements
May lack of sufficient diversity on bank boards be an unsafe or unsound banking practice?
That’s what Acting Comptroller Hsu suggested in his October 5 speech to Women in Housing and Finance.
However, he didn’t define “diversity” or a measure of what is sufficient diversity.
Hsu referred to mathematical formulas to measure diversity based on general population or staff ratios, stating that not achieving such ratios was unacceptable. He did not specifically address whether to achieve diversity by nominating directors based solely or partially on race, ethnicity, or gender.
AABD, which has long advocated bank boards to nominate directors based on qualifications without regard to race, ethnicity or gender, has asked Acting Comptroller Hsu to provide guidance so that national bank directors will better understand what is expected of them. Read our letter here.