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When Does the General Public Lose Trust in Banks?

Author

Listed:
  • David-Jan Jansen
  • Robert Mosch
  • Carin Cruijsen

Abstract

When 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. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • 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.
    • Handle: RePEc:kap:jfsres:v:48:y:2015:i:2:p:127-141
    DOI: 10.1007/s10693-014-0201-y
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    More about this item

    Keywords

    Trust; Banks; General public; Financial crisis; Survey data; D12; D14; D18; G01; G21;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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