The Impact Of Female Directors On Bank Risk

Banking sector plays an important role in Chinese financial system,and to a certain extent,it affects the development level of China's economy.Now the pace of opening up of the banking industry is speeding up,the competition among banks is intensifying,and the prevention and control of bank risks has a long way to go.As the key figure of bank internal governance and risk management,board members' decision-making behavior is closely related to bank risk management and control.In recent years,the proportion of female directors in the banking industry has been increasing,so what are the different roles women play in bank risk management and control compared with men? This paper will analyze the relationship between female directors and bank risk from an empirical point of view,which is of great significance to the rational construction of bank management and the improvement of bank risk control level.Based on the data of female directors and their characteristics in 69 Chinese banks from2013 to 2018,using the fixed effect model for empirical analysis,and the method of replacing explanatory variables for robustness test.The results show that: Firstly,increasing the proportion of female directors is conducive to reducing bank risk;Secondly,female non-independent directors can restrain bank risk,but there is no significant relationship between female independent directors and bank risk;Thirdly,highly educated female directors can strengthen the inhibition of bank risk,but age does not play a role in the impact of female directors on bank risk;Fourthly,Female directors influence bank risk by increasing the proportion of traditional business and reducing the proportion of investment business.Based on the above empirical results,the following suggestions are put forward: For bank management,Firstly,to some extent,should increase the proportion of female directors in the board of directors and give more equal opportunities for the development of female talents;Secondly,should improve the management mechanism of independent directors and standardize the functions and effectiveness of independent directors;Thirdly,should pay attention to the cultivation of female directors with high education and the improvement of female directors management quality.For government departments,in the process of promoting banking reform,we should improve the governance mechanism of the board of directors,formulate clear regulatory rules,and guide the board of directors to play a greater role in controlling bank risks.