Trust and the household-bank relationship

Miguel Ampudia and Spyros Palligkinis

No 2184, Working Paper Series from European Central Bank

Abstract: We examine the role of trust in households’ decisions to hold a bank account and to switch to a new bank. We explore Italian household-level data that contain restricted information on the banks that the households are doing business with, as well as measures of trust in the households’ main bank and the banking sector. We find that households who distrust the banking sector are less likely to hold a bank account. Moreover, account holders are more likely to switch to a new main bank if they do not trust their current one. The estimated relationships persist over and above a range of socioeconomic variables. JEL Classification: G21, G28, D14

Keywords: banking; household finance; trust (search for similar items in EconPapers)
Date: 2018-10
New Economics Papers: this item is included in nep-ban and nep-soc
Note: 2445760
References: View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20182184

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