In an interview, Isabel Schnabel, a Member of the European Central Bank’s Executive Board, discussed gender differences in financial literacy and financial decision-making and described how the ECB is trying to increase women’s representation across the institution. Schnabel noted that women, on average, have lower financial literacy than men, which can contribute to suboptimal financial decisions and a higher risk of poverty in old age, alongside structural factors such as interrupted careers, part-time work and caring responsibilities that reduce incomes and pensions. She linked better decision-making to diversity of views and experiences, pointing to the euro area’s monetary policy setting where only two of the 26 members of the Governing Council are women, and to research increasingly examining how inflation affects different groups, including lower-income households and potentially genders. On staffing, she described ECB targets for female representation at all hierarchy levels and indicated that, while below those targets, around half of new hires and promotions should be women. Measures cited included childcare support from infancy, a European School, and more explicit encouragement for women to apply for promotions, alongside a public-service salary structure with allowances linked to family situation rather than gender.
European Central Bank 2025-03-07
European Central Bank’s Schnabel sets out ECB targets for women’s hiring and promotions and highlights gender gaps in financial literacy
Isabel Schnabel, a European Central Bank Executive Board Member, highlighted gender disparities in financial literacy and decision-making, noting their impact on financial outcomes and poverty risk. She emphasized the importance of diversity in monetary policy, citing the underrepresentation of women in the ECB's Governing Council. Schnabel outlined ECB initiatives to boost female representation, including childcare support, a European School, and targeted hiring and promotion strategies.