Social trust and use of banking services across households in 28 transitional countries

Elvin Afandi () and Nazim Habibov

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we use survey data from a sample of 29,000 households from 28 transitional countries and Turkey to address two main questions: (i) is there any effect of social trust on the use of banking services and (ii) what are the household-level and country-specific determinants of using banking services in transitional countries. We found that the higher level of trust in people predicts a greater level in use of banking services by households regardless of the model specifications and econometric adjustments employed. This association appears to be more prominent among less educated respondents and in countries with low levels of legal enforcement. The results also suggest that location, income and wealth of households, along with country income level, legal enforcement and inflation rates strongly affect the decisions made by households regarding their use of banking services. In contrast, we found either a very small or non-significant impact with regard to bank ownership structure on the use of banking services across households.

Keywords: use of banking services; social trust; transitional countries (search for similar items in EconPapers)
JEL-codes: G21 O16 P20 (search for similar items in EconPapers)
Date: 2012-08-02
New Economics Papers: this item is included in nep-ban and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Social trust and use of banking services across households in 28 transitional countries (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:46997

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