When does the general public lose trust in banks?
AbstractWhen does the general public lose trust in banks? We provide empirical evidence using responses by Dutch survey participants to eight hypothetical scenarios. We find that members of the general public care strongly about executive compensation. Negative media reports, falling stock prices, and opaque product information also affect trust in banks. Experiencing a bank bailout leads to less concern about government intervention, while experience of a bank failure leads to greater concern on bonuses.
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Bibliographic InfoPaper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 402.
Date of creation: Nov 2013
Date of revision:
trust; banks; general public; financial crisis; survey data;
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- G01 - Financial Economics - - General - - - Financial Crises
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-01-10 (All new papers)
- NEP-BAN-2014-01-10 (Banking)
- NEP-CBA-2014-01-10 (Central Banking)
- NEP-SOC-2014-01-10 (Social Norms & Social Capital)
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- Carin van der Cruijsen & David-Jan Jansen & Maarten van Rooij, 2014. "The rose-colored glasses of homeowners," DNB Working Papers 421, Netherlands Central Bank, Research Department.
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