Successful bank nationalisations need trust in government, paper argues

The Netherlands Bank

Risk aversion and levels of trust in government strongly affect the reactions of bank customers to government interventions, a working paper published by the Netherlands Bank argues. In To stay or go? Consumer bank switching behaviour after government interventions, Maaike Diepstraten and Carin van der Cruijsen analyse the reactions of individual savings and current accounts holders to government interventions in banks. Their paper, the authors say, is the first on the subject to distinguis