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National culture and (dis)trust in banks: Cross‐country evidence
Author(s) -
Ahunov Muzaffarjon,
Van Hove Leo
Publication year - 2020
Publication title -
economic notes
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.274
H-Index - 19
eISSN - 1468-0300
pISSN - 0391-5026
DOI - 10.1111/ecno.12165
Subject(s) - uncertainty avoidance , hofstede's cultural dimensions theory , world values survey , index (typography) , business , survey data collection , cross cultural , economics , actuarial science , political science , psychology , social psychology , computer science , market economy , statistics , mathematics , individualism , world wide web , law , collectivism
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.