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
Original languageEnglish
JournalEconomic Notes
Early online date6 Apr 2020
Publication statusE-pub ahead of print - 6 Apr 2020

    Research areas

  • national culture, Hofstede, trust in banks, financial inclusion

ID: 49945593