Trusting Financial Institutions: Out of Reach, out of Trust?
AbstractThis paper empirically investigates the relationship between individual trust in financial institutions and individual access to these institutions. Based on a large-scale survey of savings patterns of Indians, we find that individuals reporting that they do not have access to certain financial institutions within a commutable distance of one day are less likely to trust these institutions with their money. Moreover, we find that this relationship holds for different banks and financial institutions offering services in low-income areas and that differences in trust can be explained to some extent by differences in individual access.
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Bibliographic InfoPaper provided by Universitätsbibliothek Wuppertal, University Library in its series Schumpeter Discussion Papers with number sdp13002.
Date of creation: Feb 2013
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Trust; Financial Institutions; Access; India;
Find related papers by JEL classification:
- D1 - Microeconomics - - Household Behavior
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-26 (All new papers)
- NEP-ENT-2013-01-26 (Entrepreneurship)
- NEP-HIS-2013-01-26 (Business, Economic & Financial History)
- NEP-SOG-2013-01-26 (Sociology of Economics)
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