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Trusting Financial Institutions: Out of Reach, out of Trust?

  • Ute Filipiak

    ()

    (Schumpeter School of Business and Economics, University of Wuppertal)

This 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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File URL: http://elpub.bib.uni-wuppertal.de/servlets/DerivateServlet/Derivate-3437/sdp13002.pdf
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Paper provided by Universit├Ątsbibliothek Wuppertal, University Library in its series Schumpeter Discussion Papers with number sdp13002.

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Length: 49
Date of creation: Feb 2013
Date of revision:
Handle: RePEc:bwu:schdps:sdp13002
Contact details of provider: Web page: http://elpub.bib.uni-wuppertal.de

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  1. Ross Levine & Sara Zervos, . "Stock markets, banks and economic growth ," CERF Discussion Paper Series 95-11, Economics and Finance Section, School of Social Sciences, Brunel University.
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  13. Werner Boente & Ute Filipiak, 2011. "Financial Investments, Information Flows, and Caste Affiliation - Empirical Evidence from India," Schumpeter Discussion Papers sdp11014, Universit├Ątsbibliothek Wuppertal, University Library.
  14. Dearmon, Jacob & Grier, Kevin, 2009. "Trust and development," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 210-220, August.
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