Trust, confidence and economic crisis

Tonkiss, Fran

doi:10.1007/s10272-009-0295-x

Cited by 73 publications

(38 citation statements)

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“…The bankruptcy of Lehman Brothers in September, , 2008 triggered a crisis of trust (Sapienza and Zingales, 2009;Guiso, 2010) and of confidence (Tonkiss, 2009) crisis and has acted as the starting point of a financial and economic crisis for most advanced economies worldwide, including advanced economies in the euro area (EEAG, 2010). The breeding ground of the financial crisis was mostly created by a lack of regulation within the institutional framework of the financial system in the US as well as in Europe (Acharya, 2009;De Grauwe ,2009;Stiglitz, 2009;Financial Crisis Inquiry Commission, 2011).…”

Section: Introductionmentioning

confidence: 99%

Has the Financial Crisis Eroded Citizens’ Trust in the European Central Bank? Panel Data Evidence for the Euro Area 1999-2011

Roth

Gros

2012

SSRN Journal

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Section: Introductionmentioning

confidence: 99%

Has the Financial Crisis Eroded Citizens’ Trust in the European Central Bank? Panel Data Evidence for the Euro Area 1999-2011

Roth

Gros

2012

SSRN Journal

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“…the fall of the prices of assets, the erosion of credibility of the market's participants (Tonkiss, 2009)) as well as in the institutional field (the direction of the anti-cyclical economic policy).…”

Section: Mechanism Of the Creation And Erosion Of Social Capital In Ementioning

confidence: 99%

Social capital under conditions of economic crisis — the example of Southern European countries

Wosiek

2016

EiP

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Aim: Deliberations of the article revolve around trends of social capital under conditions of economic crisis. Motivation: Final conclusions are based on theoretical considerations and empirical research. The latter include analysis of changes in indicators of social capital (in the cognitive, structural and behavioural dimension) in Southern European countries (Spain, Greece and Portugal) -from comparative perspective -before and after 2007. Data from European Social Survey and European Value Study were used. The example of Southern European countries shows that there can be no universal reaction scheme (in terms of social capital) on the crisis phenomena. Results: A common feature of the analyzed countries after 2007 is an increase in ties with friends (bonding social capital, however the heightened importance may not just be a consequence of the crisis, but rather part of long-term societal change -e.g. Portugal) and a reduction in institutional and systemic trust. It can be also concluded that countries well endowed in social capital (e.g. Spain), in the period of economic crisis to the greater extent employ social capital resources as a response to non-beneficial changes in the economic environment (which is illustrated by higher rates of civic and political participation).

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“…First, regulation or entering into a contract can be a substitute for trust in the sense that it reduces the amount of trust needed (Nooteboom 2006, pp. 257-258;Simpson and Eriksson 2009, p. 63;Tonkiss 2009). In contrast, contracts and trust are constitutive (Nooteboom 2006, pp.…”

Section: Two Sources Of Trust and Reliability: Contracts And Regulationmentioning

confidence: 99%

“…The focus in this article is on retail investors (consumers) on the market for investment products 3 ; however, considerable parts also apply to the financial market as a whole. It is also worth mentioning that this article will not go into much detail on the role of trust in the 2008 financial crisis because this has already been discussed a lot in the literature (see, e.g., Georgarakos and Pasini 2011;Sapienza and Zingales 2012, p. 723;Zingales 2011; and on the role of information, contracts, and regulation in the 2008 financial crisis: Diamond and Dybvig 1983;Tonkiss 2009). …”

Section: Introductionmentioning

confidence: 99%

A Question of Trust: the Pursuit of Consumer Trust in the Financial Sector by Means of EU Legislation

Jager

2016

J Consum Policy

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The decrease in consumer trust in the financial sector and the attempts to restore it are receiving a great deal of interest, especially since the financial crisis at the end of 2008. EU legislation is one of the ways that attempts have been made to regain the trust of investors. In the second section, the concept of "trust" will be subjected to an in-depth yet not exhaustive examination, with the aim of reducing its elusiveness. The third section will discuss three recent EU proposals. Examination of these legislative proposals reveals that (1) the term "trust" is not precisely defined, and (2) without stating further reasons, the restoration of trust in the financial sector is considered a worthy goal. In light of the aforementioned, the fourth section will address the desirability of clarity regarding the term "trust." The fifth section will then assess whether legislation is a suitable means to restore consumer trust, and the sixth section explores whether the restoration of consumer trust in the financial sector is a worthy goal. Indeed, the European legislator and other policymakers seem to consider a low level of consumer trust a bad thing, a high level of consumer trust a good thing, and a higher level of consumer trust an even better thing. This article will argue that it is doubtful whether EU legislation is a suitable means for restoring consumer trust in the financial sector and, moreover, that considering the perverse incentives in the current financial sector, among other things, a realistic degree of trust, implying a certain distrust, appears preferable.Keywords Trust . Financial markets . Financial sector . Consumer protection . Financial crisis . European legislation J Consum Policy (2017) 40:25-49 DOI 10.1007 This article is partly based on an article published in the Dutch journal THEMIS (De Jager, C.E. (2015). De financiële sector: weg (van) vertrouwen of op weg naar vertrouwen? Over het nastreven van consumentenvertrouwen in de financiële sector door middel van EU wetgeving na de financiële crisis. Rechtsgeleerd Magazijn Themis, 6,[244][245][246][247][248][249][250][251][252][253][254][255][256][257].

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Trust, confidence and economic crisis

Cited by 73 publications

References 0 publications

Has the Financial Crisis Eroded Citizens’ Trust in the European Central Bank? Panel Data Evidence for the Euro Area 1999-2011

Has the Financial Crisis Eroded Citizens’ Trust in the European Central Bank? Panel Data Evidence for the Euro Area 1999-2011

Social capital under conditions of economic crisis — the example of Southern European countries

A Question of Trust: the Pursuit of Consumer Trust in the Financial Sector by Means of EU Legislation

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