Trust in the banking sector: EU experience and evidence from Ukraine

Abstract

This work presents the results of the investigation of trust to banks in European Union as well as in Ukraine. The special focus was on relevant documents that describe the strategic directions of the Ukrainian banking system’s future development in the context of restoring trust to banks. Furthermore, some of the quantitative results of the authors’ previous publications are summarized, as they may prove valuable in the study of the subject. The authors concluded that the recent crisis is a stark reminder that banking functioning based on trusting. The dramatic changes in the banking environment brought about by financial innovation and technological progress have not diminished the role of trust in banking. Any lack of trust significantly impairs the functioning of the banking sector and prevents banks from contributing to economic growth.