BOE’s Carney Calls for Diversity to Stop Groupthink in Banking

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The financial industry needs greater diversity among its employees to reduce the risks of groupthink and bias in decision making, Bank of England Governor Mark Carney said in a speech in London Friday.

The governor, who is in the communications quiet period ahead of Thursday’s interest-rate announcement, did not comment on monetary policy. He said that senior managers at the three-century old central bank are now 32% female, up from 29% in 2018 and approaching its target of 35% by next year, while almost half of its graduate intake in September will be women.

“Almost all decisions in finance are taken under uncertainty, making it especially important that decision makers are exposed to a range of views, and engage in open debates with people whose perspectives challenge the prevailing wisdom,” he said.

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