Public confidence in financial institutions is at the core of a stable financial system. That is why DNB carries out an annual poll to gauge confidence among a representative sample of Dutch residents aged 16 and over.
One of the questions raised is whether respondents are confident that their own bank, life insurance company or pension fund will be able to meet its financial obligations.Confidence in banks and insurers in particular has fluctuated within a relatively narrow and stable bandwidth ever since 2009.
The number of respondents reporting full or strong confidence in their own bank rose slightly from 71% to 73% between April 2013 and April 2014. However, that is still 17 percentage points below the 2007 level (see Figure 1).
Respondents' confidence in their own life insurer rose substantially from 72% to 76%. This may be related to rising share prices, as people who have taken out insurance products linked to stock market developments saw their policies increase in value .
Figure 1: Confidence in own bank, life insurer or pension fund