By Marc Jones

LONDON (Reuters)

The rise in the number of women holding top jobs at leading financial institutions has slowed over the last year, as further progress is at risk due to rollbacks in diversity initiatives by the U.S. and other countries, according to a new report.

The annual Gender Balance Index, published by the London-based OMFIF think tank on Wednesday, showed that the share of female leaders in central banks, commercial banks, and sovereign and pension funds reached an all-time high of 16%. However, this was only a marginal increase compared to last year.

Furthermore, the share of women across all senior positions rose only one percentage point to 32%. The overall gender balance index is at 42 out of 100, indicating that the sector is still ‘less than halfway’ to achieving gender balance.

Diversity initiatives are facing significant challenges, especially as the U.S. government under Donald Trump aims to eliminate diversity, equity, and inclusion programs from federal agencies and influence the private sector to follow suit.

The report states, “While the U.S. has been most vocal in this retreat, there is evidence of contagion on a global scale, with institutions in Asia and Europe also rolling back policies.”

Despite these challenges, some progress has been achieved. Sovereign funds, which manage a nation’s wealth, showed the largest year-on-year improvement in the index score, reaching 38—double the score from 2021, largely due to advancements in emerging economies.

A record 30 women now head central banks, and the 50 commercial banks surveyed recorded their largest index score increase since their inclusion in 2021.

However, the pipeline of female talent remains limited. The share of women in executive C-suite roles increased from 15% to 19%, but nearly half of the commercial banks in the index still report having no women in their C-suite.

Additionally, female CEOs still account for less than 15%, with only one woman appointed last year, compared to nine men. The share of women in pension fund C-suite roles fell from 31% to 28% this past year.

The report cautions that this modest progress might reverse, as six major U.S. banks—Citi, Morgan Stanley, Wells Fargo, Bank of America, Goldman Sachs, and JPMorgan—have begun cutting their diversity, equity, and inclusion programs.

“Although it is too soon to determine the implications of this rollback on gender balance, considering the instability of the talent pipeline, it is likely that North America may not maintain its position as the highest-scoring region in the future,” it concludes.

(Additional Reporting by Simon Jessop; editing by Barbara Lewis)