Starting in the fall of 2021, the New York State Department of Financial Services ("NYDFS") will collect gender, racial and ethnic board composition data from (i) all New York-regulated banking institutions with over $100 million in assets, (ii) all regulated non-depository financial institutions with over $100 million in gross revenue, and (iii) all authorized entities engaging in virtual currency business activities. NYDFS stated that it seeks to capture information as of December 31, 2019 and 2020, including information about board tenure and key board and senior management roles. The information is expected to be published on an aggregate basis in the first quarter of 2022.
In the industry letter, NYDFS asserted that diversity should be one of the strategic business priorities of a financial institution, and a key part of a financial institution's corporate governance. NYDFS stated that making diversity a part of corporate governance would, among other things, (i) increase profitability, (ii) enhance risk management and (iii) increase employee satisfaction. NYDFS determined that the best method to support supporting the financial industry's diversity efforts is to collect and publish data pertaining to the diversity of institutions' corporate boards and management. NYDFS is relying on its statutory authority under Banking Law 37(3) under which the Superintendent may require banking organizations to make special reports.
Primary Sources
- NYDFS Press Release: Superintendent Lacewell Announces New DFS Initiative to Promote Diversity, Equity and Inclusion in Depository and Non-Depository Institutions
- NYDFS Industry Letter: Diversity, Equity and Inclusion and Corporate Governance
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