This study analyses the impact of female directors and managers on sustainability performance in the banking industry. Drawing on prior studies, we attempt to frame gender diversity, its determinants, and its consequences with respect to financial, social, and environmental performance. Our sample includes 880 bank‐year observations from 48 countries over the period 2011–2019. We conduct OLS and probit regressions on the panel data sample. The results show that increasing the proportion of female directors also improves the financial and environmental performance; female managers are keener on the social dimension and in engaging with stakeholders, than female directors. This study extends the current literature in the context of the banking industry, suggesting that banks should focus their efforts on establishing the right combination of female directors and managers. Furthermore, practical implications that encourage gender diversity among policy makers and regulators arise from this research.