Research On The Influence Of Female Directors On Banking Risks

The report of the 19 th CPC National Congress clearly pointed out that we must do a good job in controlling significant risks,and the key is to control financial risks.Commercial banks play a very important role in our financial system,and their risk management is the first task of this tough battle.But at the moment,on one hand,changes in the external living environment,such as the opening of the banking industry and the bursting of new financial formats,have intensified competition among commercial banks and increased the proportion of high-risk businesses in commercial banks.On the other hand,problems such as poor corporate governance mechanisms have also made the accumulation of operation risks in commercial banks.For example,Baoshang Bank,one of important regional banks,went bankrupt in 2020 due to defects in its corporate governance structure.Thus,it is particularly important to study and analyze the risk management of commercial banks.As a key part of the internal governance in commercial banks,the board of directors is directly responsible for the banks' risk management.In recent years,scholars have found that women have many comparative advantages in making decision.The selection of female directors in banks may help optimize the gender structure of the board of directors,expand decision-making horizons,and improve team dynamics.Based on the point of view,this article does a research in the impact of female directors on bank risks,in order to help commercial banks control risk better.This article takes 83 commercial banks in China from 2013 to 2019 as the research object.First,it explores the impact of the proportion of female directors on controlling risk in commercial banks,and then finds that increasing the proportion of female directors is beneficial to reducing bank risks.In further research,this article finds that only when female directors actually participate in the decision-making of bank governance,it will have a real impact on the effectiveness of risk management in bank,and the increase in the right of female directors and the degree of female independence will help female directors gain greater decision-making right and strengthen the restraining effect of the proportion of female directors on bank risks.In addition,this article also empirically analyzes the influence of the state-owned nature on the relationship between the proportion of female directors and bank risks,and then finds that compared with state-owned banks,increasing the proportion of female directors in non-state-owned banks is more conducive to reducing bank risks.In other words,The lower the government's share of bank equity,the higher the proportion of female directors will be more conducive to reducing bank risks.Based on the above research conclusions,this article believes that commercial banks should reasonably optimize the gender structure of the board of directors,build a more fair and reasonable selection mechanism for hiring directors,and give female directors the same opportunities and treatment as male directors,which can make the board of directors take advantage of both male and female directors in the decision-making process to optimizing the banks' risk management.At the same time,commercial banks must not place female directors in a "symbolic position" due to gender stereotypes,and it should also pay more attention to make female directors' voice heard in order to make full use of the advantages of female directors in optimizing risk management.