Public trust in banking has recovered following a sharp decline caused by the 2008 financial crisis, although the U.S. remains one of several countries where it lags behind the levels seen before the Great Recession, according to a new survey by Gallup.
Gallup’s poll of the 25 countries most affected by the crisis found that a median 63% of consumers said they had confidence in their banks and financial institutions. Previously, public confidence fell from nearly 60% to 40% immediately following the crisis, and reached a low of 37% in 2012.
Banks now rank among the most trusted institutions in the 25 countries surveyed, along with election integrity and the military, according to Gallup. However, in the U.S., public confidence in banking has not fully recovered from the crisis, with roughly 62% of respondents saying they trusted banks and financial institutions, down from 76% immediately before the recession.
“Regardless of what drove the recovery, understanding public confidence in banks is important because trust underpins the financial system,” Gallup reported. “If people don’t trust banks, and they withdraw their money, it can trigger bank runs and wider panic. The more trust there is in the system, the more willing people are to save and invest. Trust keeps money flowing through the financial system and helps support growth.”
