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Trust in banks

Author

Listed:
  • Zuzana Fungáčová
  • Iftekhar Hasan
  • Laurent Weill

    (LARGE - Laboratoire de Recherche en Gestion et Economie - UNISTRA - Université de Strasbourg)

Abstract

Trust in banks is considered essential for an effective financial system, yet little is known about what determines trust in banks. Only a handful of single-country studies discuss the topic, so this paper aims to fill the gap by providing a cross-country analysis on the level and determinants of trust in banks. Using World Values Survey data covering 52 countries during the period 2010–2014, we observe large cross-country differences in trust in banks and confirm the influence of several sociodemographic indicators. Our main findings include: women tend to trust banks more than men; trust in banks tends to increase with income, but decrease with age and education; and access to television enhances trust, while internet access erodes trust. Additionally, religious, political, and economic values affect trust in banks. Notably, religious individuals tend to put greater trust in banks, but differences are observed across denominations. The holding of pro-market economic views is also associated with greater trust in banks.

Suggested Citation

  • Zuzana Fungáčová & Iftekhar Hasan & Laurent Weill, 2019. "Trust in banks," Post-Print hal-03065783, HAL.
    • Handle: RePEc:hal:journl:hal-03065783
    DOI: 10.1016/j.jebo.2017.08.014
    Note: View the original document on HAL open archive server: https://hal.science/hal-03065783
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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Z1 - Other Special Topics - - Cultural Economics

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