Mattresses versus Banks - The Effect of Trust on Portfolio Composition
No 40, Discussion Papers from Kyiv School of Economics
This paper adds to the growing literature that studies whether trust affects the financial decisions of people. More specifically, we investigate whether lack of trust in banks can explain why people save their savings in cash, ‘under the mattress’, rather than deposit their savings at the bank. We find a significant effect of lack of trust on the likelihood that a person saves money in cash but also that lack of trust can only provide part of the explanation for the ‘money under the mattress’ phenomenon. Other factors that matter are the financial awareness and access to bank services.
Keywords: trust; bank deposits; cash savings; financial awareness (search for similar items in EconPapers)
JEL-codes: G21 O16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cba and nep-cbe
Note: Journal of Development Economics
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://repec.kse.org.ua/pdf/KSE_dp40.pdf June 2011 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kse:dpaper:40
Access Statistics for this paper
More papers in Discussion Papers from Kyiv School of Economics Contact information at EDIRC.
Series data maintained by Iryna Sobetska ().