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When does the general public lose trust in banks?

  • David-Jan Jansen
  • Robert Mosch
  • Carin van der Cruijsen

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.

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File URL: http://www.dnb.nl/en/binaries/working%20Paper%20402_tcm47-299617.pdf
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Paper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 402.

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Date of creation: Nov 2013
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Handle: RePEc:dnb:dnbwpp:402
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