Financial stability and public confidence in banks

Arbeitspapier

We use a novel, household opinions-based measure – Public Confidence in a Bank – to explore the role of bank-level and system-wide determinants of customers' trust in banks. Our study covers a panel of approximately 260 large Russian commercial banks publicly monitored during 2010–2017. We find that public confidence in a bank is highly sensitive to the industry-level financial stability indicators, but less sensitive to bank-level risk characteristics. This result reveals an important role of overall banking sector stability in determining public perception of the safety and soundness of individual banks.

Object Details

• ISBN: 978-952-323-262-4
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BOFIT Discussion Papers ; No. 2/2019

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Household Saving; Personal Finance
• Subject: financial stability ; public confidence ; bank failures ; customer opinions ; online reviews

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Chernykh, Lucy ; Davydov, Denis ; Sihvonen, Jukka
• Event: Veröffentlichung
• (who): Bank of Finland, Institute for Economies in Transition (BOFIT)
• (where): Helsinki
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/212910
• Last update: 10.03.2025, 11:42 AM CET