When Does the General Public Lose Trust in Banks?

38 Pages Posted: 31 Dec 2013

See all articles by David-Jan Jansen

David-Jan Jansen

De Nederlandsche Bank

Robert Mosch

International Monetary Fund (IMF)

Carin van der Cruijsen

De Nederlandsche Bank

Date Written: November 20, 2013

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.

Keywords: trust, banks, general public, financial crisis, survey data

JEL Classification: D12, D14, D18, G01, G21

Suggested Citation

Jansen, David-Jan and Mosch, Robert and van der Cruijsen, Carin, When Does the General Public Lose Trust in Banks? (November 20, 2013). De Nederlandsche Bank Working Paper No. 402. Available at SSRN: https://ssrn.com/abstract=2373084 or http://dx.doi.org/10.2139/ssrn.2373084

David-Jan Jansen (Contact Author)

De Nederlandsche Bank ( email )

P.O. Box 98
1000 AB Amsterdam
Netherlands

HOME PAGE: http://sites.google.com/site/djansenresearch

Robert Mosch

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

Carin van der Cruijsen

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

HOME PAGE: http://www.dnb.nl/en/onderzoek-2/onderzoekers/overzicht-persoonlijke-paginas/index.jsp

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