London Daily

Focus on the big picture.
Thursday, Oct 22, 2026

Why isn't the new Bank of England governor a woman?

While many have welcomed Andrew Bailey's appointment as the new governor of the Bank of England, some suggested he has one key flaw: he is a white male.

In different circumstances that might not have raised hackles. As boss of City regulator the Financial Conduct Authority, Mr Bailey has lots of experience and is well qualified for his new job.

However, the Bank has repeatedly come under fire for not being representative of the population over which its policies have so much influence.

And as Mr Bailey becomes the 121st governor he highlights an uncomfortable truth. Not once in the institution's 320-year history has it picked a woman to be its leader.

For Dominie Moss, the founder of Return Hub, a City recruitment firm, it points to a serious problem not just at the Bank but in the world of finance as a whole.

"When the intake level is broadly equal and the board level is anything but, we have to be honest that there is a culture problem in financial services."

Andrew Bailey was appointed by the government, not the Bank: chosen by Chancellor Sajid Javid and approved by the prime minister.

Mr Bailey was picked because he was the right man for the job, says Bev Shah, the founder of City Hive, which promotes diversity in the City.

But she asks: "Why was there no right woman for the job?"

Ms Shah says his appointment highlights "significant structural issues" in the pipeline of talent at the Bank.

"The role should never have been given to a woman just because of her gender," she says.

But she thinks the "entire structure" of the Bank - including those on its committees who could one day become governor - is "not very diverse".

The Bank admits it could do better. In its annual report this year, the it said it was set to miss its own diversity targets, despite efforts to recruit and retain more women and black, Asian and minority ethnic (Bame) staff.

It had hoped all non-senior jobs would be equally shared by men and women by 2020, but the proportion this year was just shy at 46%.

Women now hold almost a third of senior management roles, a big improvement from 17% in 2013, but still below the target of 35%. Meanwhile, only 5% of senior Bank staff identify as Bame.

The statistics suggest the Bank is doing better than the economics profession overall. But, as a recent picture of the nine members of its Monetary Policy Committee shows, the lack of diversity at the top is glaring.

The nine-strong committee - which sets the UK's official interest rate - comprises eight white men and just one (white) woman.

It was for this reason that the Treasury promised to make diversity a priority when choosing the new governor. It even hired a headhunting firm that specialises in placing women in top roles.

For a while, Dame Minouche Shafik - a former deputy governor of the Bank and a director of the London School of Economics - was tipped as the government's favourite. But in the end Mr Bailey won the day.

Some think a deeper systemic trend is to blame for the reluctance to pick women: the startling lack of female economists in the world.

Most top roles in finance go to people with degrees in economics. But economics courses have long skewed male, with some arguing that women are put off because of the profession's male-oriented image.

It has made it doubly hard for women who do specialise in the subject to rise to the top in their careers. Last year the American Economic Association, which promotes the study of economics, surveyed current and former members including academics and working economists. It received 9,000 responses.

Nearly half of female respondents reported having been discriminated against on the basis of sex, compared to 3% of men.

And lots said they felt excluded by the adversarial style of debate common to many economics faculties.

Almost half said they refrained from asking questions during discussions at their place of work in order to avoid "possible harassment, discrimination or unfair and disrespectful treatment". And 69% felt their work was taken less seriously than their colleagues'.


'Revise and resubmit'


Claudia Goldin, who helped oversee the survey, believes the uneven playing field starts earlier, when female economists are qualifying.

"Among female graduate students, there are issues concerning mentoring and advising. There are issues concerning the seminar culture. Among assistant professors, there are issues concerning tenure and publishing, credit for co-authorship."

Some argue female PhD students are also held to higher standards. Papers written by women receive a much higher rate of "revise and resubmit", claims a recent study by Prof Jenna Stearns of the University of California, Davis.

Such women are also much less likely than men to have a tenured academic job 10 years after graduation, the paper also found.


'A more equal shot'


According to Dominie Moss, appointing a female governor of the Bank of England is not going to solve finance's wider diversity problem.

"Diversity in the City has to go beyond one or two top appointments," she says.

But Yasmine Chinwala, a partner at think tank New Financial, thinks the Bank would set an example if it mirrored the more progressive City firms out there.

"These companies are applying rigour around picking apart what the criteria and process is when someone is due to get a promotion or win a senior appointment," she says.

"For example, we see that promotion is often awarded for those who work on the biggest deals or projects.

"The companies committed to change are taking a deeper look at giving women more exposure so that when a promotion comes up, they have a more equal shot at it."

Newsletter

Related Articles

0:00
0:00
Close
Parliamentary Inquiry Highlights Urgent Need to Address Housing Shortage as Scottish Completions Hit Eleven-Year Low
United Kingdom and Singapore Sign Comprehensive Financial Agreement to Deepen Digital and Sustainable Market Ties
Greggs Announces Plan to Close Four Manufacturing Facilities and Cut Seven Hundred and Forty Jobs
International Monetary Fund Raises United Kingdom Economic Growth Forecast While Warning of Inflationary Pressures
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs Onto Gas to Lower Household Bills
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
×