The European Union’s banking watchdog said 28% of banks have failed to implement a mandatory policy on boardroom diversity.
The European Banking Authority (EBA) said it will crack down on those banks, according to the report.
Data collected by the EBA at the end of 2021 from nearly 800 banks and investment firms showed that women account for only 18% of executives and 28% of non-executive directors.
Women executive directors also on average earned 9.5% less than their male counterparts, although the gap was slightly smaller for non-executive directors at 6%.
Since 2014, European banks have been required to have a policy on diversity, whether they set their own targets or adhere to national laws.
Larger banks, as well as those in northern and eastern Europe, fared better on diversity than other parts of the EU, the EBA said.
Bernd Rummel, a senior policy expert at the EBA said in Reuters it will “take action and look at what national supervisors are doing."
"It's important that all banks adopt diversity policies and have their own targets. This needs to be 100%," Rummel added.
The report added that “women’s representation on boards has gradually improved, but imbalances remain.”