implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust … control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of … competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both …

Trust in financial institutions is of great importance for financial intermediation. Against this background, we study … two questions: Has trust in banks declined during the global financial crisis and what factors determine the level of … trust in banks? Employing survey evidence from Austrian households, we show that trust in banks is mainly affected by …