Zusammenfassung:
This paper examines the effect of board gender diversity on bank risk. The empirical analysis is conducted using 21 sample Kenyan commercial banks during the period 2010-2022 in a panel regression framework. Two key results are documented: first, that the share of women in Kenyan bank boards is low (sample average of about 19%), although it has made progress, rising from about 13% in 2010 to about 26% by end of 2022. Second, the paper provides evidence that increasing women directors in banks' boards, curtails excessive bank risk-taking and promotes bank stability. Thus, regulators may consider imposing gender quotas in bank boards as a way of mitigating bank risk.