Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Trusting Banks in a Financial Crisis No. A1-V2
This paper reviews the state of confidence and trust in the Netherlands, with special attention to the financial sector. An attempt has been made to identify the factors that determine individual trust and confidence and to uncover connections between the various variables. Based on surveys over the period 2003-2006, the data show that interpersonal trust in the Netherlands - the extent to which the Dutch trust each other - is high from both an international and an historical perspective. People who trust others typically display higher trust in institutions, promoting the smooth operation of such institutions. Yet the Dutch have little trust in some of the country's institutions, i.e., the euro, parliament and the social security system. However, the level of trust in financial institutions and the Dutch central bank is high, although trust in the integrity of business is clearly lower than that in financial institutions - but still higher than that in parliament. The high level of trust in the financial sector was not harmed by a bank failure in the Netherlands in 2004. People on benefits generally take a less favourable view of institutions and the economy in the Netherlands. Closer analysis of the data reveals a significant link between confidence in the economy and trust in the country's institutions. This correlation only adds to the importance of trust in institutions and between people.