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When Does the General Public Lose Trust in Banks?

  • David Jan Jansen*
  • , Robert H.J. Mosch
  • , Carin A.B. van der Cruijsen
  • *Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

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.

Original languageEnglish
Pages (from-to)127-141
Number of pages15
JournalJournal of Financial Services Research
Volume48
Issue number2
DOIs
Publication statusPublished - 1 Oct 2015
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2014, Springer Science+Business Media New York.

Keywords

  • Banks
  • Financial crisis
  • General public
  • Survey data
  • Trust

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