Royal Bank of Canada says it is raising internal targets for the number of racial minorities in executive roles to improve diversity in its leadership ranks.
Canada's largest bank said Monday it will set a new goal of having 30% of open executive positions filled by Black, indigenous and other people of color. The previous goal was 20%.
"The only way we can truly represent the communities we serve and harness the potential of our diversity is to grow the number of BIPOC leaders across our bank," Royal Bank said in a statement.
The bank's home city of Toronto boasts a population that is more than 50% foreign-born, but there is little diversity in the upper echelons of its financial firms. At Canada's Big 6 banks and two large life insurers, 10% of top executive roles and 8% of non-executive board positions are held by visible minorities, according to data compiled by Bloomberg.
RBC said it plans to lend C$100 million ($73.8 million) over five years to small businesses owned by Black entrepreneurs and will spend C$50 million to help 25,000 young people of color build their skills. The bank said it will give 40% of all "summer opportunities" to this group and establish new hire goals for Black and indigenous people in Canada, the U.S. and the U.K., starting next year.
"We have made progress against some of our goals, but there is more to be done. Today we're taking direct actions to tackle issues of inequity and systemic bias," the bank said.
