Mattresses versus Banks - The Effect of Trust on Portfolio Composition (Coupe T.)

Household Strategies

Abstract 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.
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Libref/ Coupe T. (2011) "Mattresses versus Banks - The Effect of Trust on Portfolio Composition", Kyiv School of Economics Discussion Paper No. 40, pp. 1 - 23
© Программирование — Александр Красильников, 2008
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