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Knowledge and opinions about banking supervision: Evidence from a survey of Dutch households

Author

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  • van der Cruijsen, Carin
  • de Haan, Jakob
  • Jansen, David-Jan
  • Mosch, Robert

Abstract

What does the general public know about banking supervision? What objectives does the public think bank supervisors should pursue? We investigate these issues using a survey among Dutch households. First, we find that the public's knowledge about banking supervision is far from perfect. We also find that respondents often expect more from supervisors than they can realistically achieve. Finally, our findings suggest that better-informed people have more realistic views on banking supervision. Realistic views on banking supervision lead to more prudent financial behavior, which, in turn, contributes to financial stability. Therefore, the communication policies of banking supervisors should aim to improve the public's knowledge about banking supervision.

Suggested Citation

  • van der Cruijsen, Carin & de Haan, Jakob & Jansen, David-Jan & Mosch, Robert, 2013. "Knowledge and opinions about banking supervision: Evidence from a survey of Dutch households," Journal of Financial Stability, Elsevier, vol. 9(2), pages 219-229.
  • Handle: RePEc:eee:finsta:v:9:y:2013:i:2:p:219-229
    DOI: 10.1016/j.jfs.2011.11.002
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    References listed on IDEAS

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    1. Jean Pisani-Ferry & André Sapir, 2010. "Banking crisis management in the EU: an early assessment," Economic Policy, CEPR;CES;MSH, vol. 25, pages 341-373, April.
    2. van der Cruijsen, Carin A.B. & Eijffinger, Sylvester C.W., 2010. "From actual to perceived transparency: The case of the European Central Bank," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 388-399, June.
    3. Robert Mosch & Henriëtte Prast, 2008. "Confidence and trust: empirical investigations for the Netherlands and the financial sector," DNB Occasional Studies 602, Netherlands Central Bank, Research Department.
    4. Author-Name: Alan S. Blinder & Alan B. Krueger, 2004. "What Does the Public Know about Economic Policy, and How Does It Know It?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(1), pages 327-397.
    5. Michael Hurd & Maarten Van Rooij & Joachim Winter, 2011. "Stock market expectations of Dutch households," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(3), pages 416-436, April.
    6. van Rooij, Maarten & Lusardi, Annamaria & Alessie, Rob, 2011. "Financial literacy and stock market participation," Journal of Financial Economics, Elsevier, vol. 101(2), pages 449-472, August.
    7. repec:dau:papers:123456789/12379 is not listed on IDEAS
    8. van Rooij, Maarten C.J. & Lusardi, Annamaria & Alessie, Rob J.M., 2011. "Financial literacy and retirement planning in the Netherlands," Journal of Economic Psychology, Elsevier, vol. 32(4), pages 593-608, August.
    9. Nicole Jonker, 2007. "Payment Instruments as Perceived by Consumers – Results from a Household Survey," De Economist, Springer, vol. 155(3), pages 271-303, September.
    10. Charles Goodhart, 2008. "The Regulatory Response to the Financial Crisis," FMG Special Papers sp177, Financial Markets Group.
    11. Demirgüç-Kunt, Asli & Detragiache, Enrica, 2011. "Basel Core Principles and bank soundness: Does compliance matter?," Journal of Financial Stability, Elsevier, vol. 7(4), pages 179-190, December.
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    Citations

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    Cited by:

    1. Neuenkirch, Edith & Hayo, Bernd, 2015. "The influence of media use on laymen s monetary policy knowledge in Germany," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113218, Verein für Socialpolitik / German Economic Association.
    2. Michiel Bijlsma & Karen Van Der Wiel, 2015. "Consumer perception of deposit insurance: little awareness, limited effectiveness?," Applied Economics, Taylor & Francis Journals, vol. 47(32), pages 3439-3461, July.
    3. Hayo, Bernd & Neuenkirch, Edith, 2014. "The German public and its trust in the ECB: The role of knowledge and information search," Journal of International Money and Finance, Elsevier, vol. 47(C), pages 286-303.
    4. Bernd Hayo & Matthias Uhl, 2017. "Taxation and consumption: evidence from a representative survey of the German population," Applied Economics, Taylor & Francis Journals, vol. 49(53), pages 5477-5490, November.
    5. Vinogradov, Dmitri, 2012. "Destructive effects of constructive ambiguity in risky times," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1459-1481.
    6. Benjamin Born & Michael Ehrmann & Marcel Fratzscher, 2011. "How Should Central Banks Deal with a Financial Stability Objective? The Evolving Role of Communication as a Policy Instrument," Chapters,in: Handbook of Central Banking, Financial Regulation and Supervision, chapter 9 Edward Elgar Publishing.
    7. Nijskens, Rob, 2014. "A sheep in wolf’s clothing: Can a central bank appear tougher than it is?," Journal of Banking & Finance, Elsevier, vol. 48(C), pages 94-103.
    8. Chwieroth, Jeffrey & Walter, Andrew, 2015. "Great expectations, veto players, and the changing politics of banking crises," LSE Research Online Documents on Economics 60953, London School of Economics and Political Science, LSE Library.
    9. Carin Cruijsen & Jakob Haan & David-Jan Jansen, 2016. "Trust and Financial Crisis Experiences," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 577-600, June.
    10. Federica Teppa & Corrie Vis, 2012. "The CentERpanel and the DNB Household Survey: Methodological Aspects," DNB Occasional Studies 1004, Netherlands Central Bank, Research Department.
    11. Paul Cavelaars & Jakob de Haan & Paul Hilbers & Bart Stellinga, 2013. "Challenges for financial sector supervision," DNB Occasional Studies 1106, Netherlands Central Bank, Research Department.
    12. Michiel Bijlsma & Karen van der Wiel, 2012. "What Awareness? Consumer Perception of Bank Risk and Deposit Insurance," CPB Discussion Paper 205, CPB Netherlands Bureau for Economic Policy Analysis.
    13. David-Jan Jansen & Robert Mosch & Carin Cruijsen, 2015. "When Does the General Public Lose Trust in Banks?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 48(2), pages 127-141, October.
    14. Maarten van Rooij & Jakob de Haan, 2016. "Will helicopter money be spent? New evidence," DNB Working Papers 538, Netherlands Central Bank, Research Department.
    15. Carin van der Cruijsen & Jakob de Haan & David-Jan Jansen & Robert Mosch, 2011. "Household savings behaviour in crisis times," DNB Working Papers 315, Netherlands Central Bank, Research Department.

    More about this item

    Keywords

    Banking supervision; Knowledge; Communication; Financial literacy; Household decision-making;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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