Does Trust Matter for the Perceived and Actual Cost of Financial Intermediation?
Article Sidebar
Main Article Content
บทคัดย่อ
Trust is widely recognized as a crucial factor in fostering financial market efficiency. This research delves into the influence of trustworthiness in financial markets on both perceived and actual costs of financial intermediation, drawing upon an extensive eleven-year panel (2007-2017) encompassing 136 countries. The study assesses the cost of financial intermediation through two key indicators: the bank lending-deposit spread and the perception of affordability in financial services. The findings reveal that trust in financial markets positively impacts the perception of the cost of financial services across both high-income and non-high-income groups. However, it is noteworthy that trust exhibits a negative effect on the lending-deposit spread, although this effect is statistically insignificant, particularly in the context of high-income countries.
Article Details
อนุญาตภายใต้เงื่อนไข Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
The paper is published under CC BY-NC-ND, in which the article is freely downloaded and shared in its original form non-commercially and its citation details are identified.
เอกสารอ้างอิง
Agapova, A., & McNulty, J. (2016). Interest rate spreads and banking system efficiency: General considerations with an application to the transition economies of Central and Eastern Europe. International Review of Financial Analysis, 47, 154-165.
Álvarez-Botas, C., & González, V. M. (2021). Does trust matter for the cost of bank loans? Journal of Corporate Finance, 66, 101791.
Blommestein, H.J. (2006). How to restore trust in financial markets? In P.H. Dembinski, C. Lager, A. Cornford & J.M. Bonvin (Eds.), Enron and World Finance (pp.180-190). London: Palgrave Macmillan.
Butter, F. A. G. den, & Mosch, R. H. J. (2003). Trade, trust, and transaction cost (Tinbergen Institute Discussion Papers No. 03-082/3). Retrieved from https://research.vu.nl/en/publications/trade-trust-and-transaction-costs
Chamberlain, G. (1980). Analysis of covariance with qualitative data. The Review of Economic Studies. 47(1), 225-238.
Calice, P., & Zhou, N. (2018). Benchmarking costs of financial intermediation around the world (World Bank Policy Research Working Paper Series No. 8478). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3238312
Chan, K., Kuo, W., Lin, C.-Y., & Lin, T.-C. (2020). Firm trustworthiness and bank loan pricing (SSRN Scholarly Paper ID 3535237). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3535237
Demirguc-Kunt, A., & Levine, R. (2000). Bank concentration: Cross-country evidence. Retrieved from https://documents1.worldbank.org/curated/en/979371468780328170/pdf/wdr27828.pdf
Demirgüç-Kunt, A., & Klapper, L. (2012). The impact of trust on financial service affordability (World Bank Policy Research Working Paper No.6185). Retrieved from https://www.worldbank.org/en/topic/financialinclusion/brief/how-to-measure-financial-inclusion
Dyer, J. H., & Chu, W. (2003). The role of trustworthiness in reducing transaction costs and improving performance: Empirical evidence from the United States, Japan, and Korea. Organization Science, 14(1), 57–68.
Gelos, R. G. (2009). Banking spreads in Latin America. Economic Inquiry, 47(4), 796–814.
Glaeser, E. L., & Gyourko, J. (2005). The impact of building restrictions on housing affordability (SSRN Scholarly Paper ID 790487). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=790487
Greene, W.H. (2002), Econometric analysis. New York: Prentice Hall.
Gropp, R., Kok, C., & Lichtenberger, J.-D. (2014). The dynamics of bank spreads and financial structure. Quarterly Journal of Finance, 4(4), 1450014.
Guiso, L., Sapienza, P., & Zingales, L. (2008). Trusting the stock market. The Journal of Finance, 63(6), 2557–2600.
Hossain, M. (2010). Financial reforms and persistently high bank interest spreads in Bangladesh: Pitfalls in institutional development? (MPRA Paper No. 24755). Retrieved from https://mpra.ub.uni-muenchen.de/24755/
Howorth, C., & Moro, A. (2012). Trustworthiness and interest rates: An empirical study of Italian SMEs. Small Business Economics, 39(1), 161–177.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2008). Trust and financial inclusion: Evidence from a cross-country survey. Journal of Finance, 63(2), 265–300.
Mujeri, M. K., & Younus, S. (2009). An analysis of interest rate spread in the banking sector in Bangladesh. The Bangladesh Development Studies, 32(4), 1–33.
OECD. (2017). OECD guidelines on measuring trust. Paris: OECD Publishing.
OECD (2019). OECD business and finance outlook 2019: Strengthening trust in business. Paris: OECD Publishing.
Shin, J. (1985). Perception of price when price information is costly: Evidence from residential electricity demand. The Review of Economics and Statistics, 67(4), 591-598.
The International Monetary Fund. (2003). World economic outlook, April 2003: Growth and institutions. Retrieved from https://www.imf.org/en/Publications/WEO/Issues/2016/12/30/World-Economic-Outlook-April-2003-Growth-and-Institutions-16369
