Biggest concerns are about the economy
Households in the Netherlands are worried about the impact of the coronavirus outbreak on the economy, their own financial situation and that of financial institutions. Remarkably, on a 0-10 scale, they rate their concerns over the economy at 7.9, higher than those over their own finances, which they rate at 5.8. Low-income households evidently worry more about their own financial situation than those on higher incomes. Whereas persons working in public administration and healthcare report the fewest concerns, those working in sectors impacted by lockdown restrictions, such as in hospitality, and in culture, sports and recreation, express the largest concerns. Dutch households also expect the coronavirus outbreak to have repercussions on the financial position of banks, insurance firms and pension funds, but this worries them less than the impact of the virus on the Dutch economy overall.
Trust in financial institutions remains high
Trust in financial institutions remains high among Dutch households, compared to previous years (see Figure 1). Three-quarters of the respondents say they mostly or fully trust their own banks, a figure that shows no sign of waning compared with a year earlier. Trust was measured on the basis of the survey question “Are you currently confident that the bank or banks to which you have entrusted your money will at all times be able to repay that money in full?” The measures which banks have taken to confront the coronavirus crisis, such as deferring dividend distributions to shareholders and creating additional room for lending, have made positive contributions to trust. Trust in insurance firms and pension funds also remained at the level seen in 2019. Roughly two-thirds of the respondents say they are confident that insurance firms are able to meet their contractual commitments. Also, around two-thirds say they are confident their pension funds will be able to pay out their pension benefits.