The regulator of the 11 Federal Home Loan Banks (FHLBs) – in an effort to improve diversity on the banks’ boards – should conduct a review on each bank’s processes for collecting gender and race/ethnicity data from board members and communicate effective practices to the banks, a congressional oversight agency recommended in a report released Wednesday.
The Government Accountability Office (GAO) said in its report, Federal Home Loan Banks: Steps Have Been Taken to Promote Board Diversity, but Challenges Remain, that in 2015, the FHLBs started reporting on diversity in their boards of directors. Since then, the report states, the overall share of female and minority directors increased.
However, GAO noted, individual directors voluntarily report their demographics to their regulator, the Federal Housing Finance Agency (FHFA). In 2017, 8% of directors didn’t report their race or ethnicity, and it’s unclear if they opted out or just forgot, the congressional watchdog said.
“To better track diversity trends, the Banks should find ways to help collect more complete demographic data,” GAO stated.