Anna Buriak,

Sumy State University

Ukraine

Email: a.buriak@uabs.sumdu.edu.ua

Social trust and institutional (bank) trust: Empirical evidence of interaction

Iveta Vozňáková,

Institute of Entrepreneurship and Marketing, University of Entrepreneurship and Law, Prague, Czech Republic

Email: iveta.voznakova@seznam.cz

Joanna Sułkowska,

University of Social Sciences, Lodz, Poland

Email: jsulkowska@san.edu.pl

Yana Kryvych,

Sumy State University

Ukraine

Email: y.kryvych@uabs.sumdu.edu.ua

Abstract. This paper analyzes the interaction between interpersonal trust (as informal rules and behavior) and trust in banks (as formal rules and institutions) as well as institutional sources of trust. Structural equation modeling and cluster analysis were applied to data from the World Values Survey extracted from the Wave 6 (2010-2014). The results of cross-sectional estimations show complementary view on interaction – a positive link between interpersonal trust and trust in banks. Using cluster method, strong impact of institutional environment (GDP per capita, Education Index, Inequality Index, Rule of Law Index) on the level of interaction has been found. The lowest level of linkages between interpersonal trust and trust in banks is associated with the worst institutional environment, the highest level of impact – with the best institutional environment.

Received: February, 2019

1st Revision: April, 2019

Accepted: October, 2019

DOI: 10.14254/2071-789X.2019/12-4/7

JEL Classification: A14, G21, G41

Keywords: interpersonal trust, institutional trust, banks, structural equation modeling