National culture and (dis)trust in banks: Cross-country evidence |
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Authors: | Muzaffarjon Ahunov Leo Van Hove |
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Institution: | 1. Endicott College of International Studies, Woosong University, Dong-gu Daejeon, South Korea;2. Department of Applied Economics (APEC), Vrije Universiteit Brussel (Free University of Brussels), Brussels, Belgium |
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Abstract: | We examine to what extent a specific aspect of national culture—uncertainty avoidance—can explain cross-country variations in (dis)trust in banks. Relying on data from the World Values Survey, we find that trust in banks is lower in countries that score high for Hofstede's uncertainty avoidance index. Similarly, with Global Findex data, we find that financial exclusion due to a lack of trust in banks is high in high uncertainty avoidance cultures. These results highlight the need for a more culturally aware approach when designing consumer protection measures for the banking sector. |
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Keywords: | distrust financial exclusion Hofstede national culture trust in banks |
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