BREAKDOWN OF TRUST IN FINANCIAL INSTITUTIONS IN LIGHT OF THE GLOBAL FINANCIAL CRISIS
Abstract
Growing interconnectivity of the global economy brings about extensive shocks resulting in increased economicuncertainty. In order for economies to handle these shocks, they need to understand the new normality and design
macroprudential policies to increase the stability and resilience of the financial system, necessary for a proper functioning of
the world economy. The recent global financial crisis, a turbulence of great magnitude, took the world by surprise and has
had an enormous impact on the world economy. One of the negative impacts is a breakdown of trust in financial institutions.
Banks are now facing an urgent need to restore public confidence. The objective of this paper is to identify the reasons
behind the present global financial crisis and determine actions for banks to take in order to regain the lost trust and build
long-term relationships with their clients.
The Copyright Transfer Form to ASERS Publishing (The Publisher)
This form refers to the manuscript, which an author(s) was accepted for publication and was signed by all the authors.
The undersigned Author(s) of the above-mentioned Paper here transfer any and all copyright-rights in and to The Paper to The Publisher. The Author(s) warrants that The Paper is based on their original work and that the undersigned has the power and authority to make and execute this assignment. It is the author's responsibility to obtain written permission to quote material that has been previously published in any form. The Publisher recognizes the retained rights noted below and grants to the above authors and employers for whom the work performed royalty-free permission to reuse their materials below. Authors may reuse all or portions of the above Paper in other works, excepting the publication of the paper in the same form. Authors may reproduce or authorize others to reproduce the above Paper for the Author's personal use or for internal company use, provided that the source and The Publisher copyright notice are mentioned, that the copies are not used in any way that implies The Publisher endorsement of a product or service of an employer, and that the copies are not offered for sale as such. Authors are permitted to grant third party requests for reprinting, republishing or other types of reuse. The Authors may make limited distribution of all or portions of the above Paper prior to publication if they inform The Publisher of the nature and extent of such limited distribution prior there to. Authors retain all proprietary rights in any process, procedure, or article of manufacture described in The Paper. This agreement becomes null and void if and only if the above paper is not accepted and published by The Publisher, or is with drawn by the author(s) before acceptance by the Publisher.