Theorists and policy analysts have convincingly argued that greater trust makes a more efficient society by eliminating … trust-building contract device: satisfaction guaranteed. We find that satisfaction guaranteed indeed builds trust and … it is fully voluntary, but the guarantee only elicits the trust of buyers when it has legal backing …

universal banks under-price loans to win underwriting business. Instead, we find that universal banks charge premiums for loans … universal banks (as opposed to stand alone investment banks) enjoy cost advantages in both lending and underwriting …

. However, a financial institution -- perhaps best viewed as a savings bank -- can provide partial insurance by generating a … the bank faces a tradeoff between provision of insurance and maintenance of private incentives …

) electronic payments system. We construct an equilibrium model of customer and bank adoption of ACH. We structurally estimate the … variation in the adoption decisions of banks based outside the network and other factors. We find that most of the impediment to … larger subsidies to banks for ACH adoption could increase welfare significantly …

We document that trust in public institutions--and particularly trust in banks, business and government--has declined … the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial … over recent years. U.S. time series evidence suggests that this partly reflects the pro-cyclical nature of trust in …

competitive interactions between banks and non-bank lenders (fintech firms). Trust enables lenders to have assured access to … financing, whereas a loss of investor trust makes this access conditional on market conditions and lender reputation. Banks … endogenously have stronger incentives to maintain trust. When borrower defaults erode trust in lenders, banks are able to survive …

benefit from Institutions benefit from regulation that: enhances customer confidence; increases the convenience of customer …