Gallup: Most Americans Still Lack Confidence in Banks

While the U.S. economy has recovered in the years following the worst of the financial crisis, this time has not yet healed Americans’ confidence in banks, which continues to languish below 30% for the eight straight year following the 2007-2009 recession, according to a recent Gallup poll.

Just 27% of U.S. adults now say they have “a great deal” or “quite a lot” of confidence in banks, accord to the sample of 1,027 adults aged 18 and older surveyed by Gallup. In addition to those expressing high confidence in banks, nearly half say they have “some” confidence in them, while 26% have “very little” or no confidence.

Despite less than one-third of Americans lacking confidence, this percentage is slightly higher than the lows during the Great Recession and its aftermath.

Advertisement

“Low confidence in banks is not unprecedented, and Americans’ views of the institution have recovered in the past from severe dips,” Gallup writes.

The current share of adults who say they have confidence in banks is just half of what it was in 2004, when 53% expressed confidence in the institution. In 1979, confidence was a record high of 60%, according to Gallup.

Confidence in banks began to fall in 2005 and 2006, Gallup noted. By 2007, with home prices starting to decline after peaking in 2006, banking confidence dipped to 41% before falling further to 32% in June 2008 after the recession began. By June 2009, just 22% of Americans expressed confidence in banks, just slightly worse than today’s level.

Income also factored into the confidence levels of survey respondents and how they feel towards banks. Adults from households earning less than $30,000 annually (33%) were more likely than those in the middle (24%) and higher (22%) income brackets to express high confidence in banks.

Based on the survey results, it is clear that the aftermath of the 2008 financial crisis continues to affect Americans’ perceptions of the banking industry. Despite signs of recovery over the years, Gallup notes that views of the U.S. economy’s overall health remain negative, and Americans are not more willing to feel confident about banks.

“Regaining Americans’ trust in recent years, then, appears to be a heavier lift for the banking industry,” Gallup writes. “And it is unclear when—or if—Americans’ confidence in banks will be restored to what it was a decade ago.”

View the Gallup poll.

Written by Jason Oliva

Join the Conversation (1)

see all

This is a professional community. Please use discretion when posting a comment.

  • This is a good Friday round up article by Jason, however, I want to bring up some points that I feel are worth mentioning.

    I think the consumer at times needs to look more at the Federal Government than the banks. They need to know what led up to the economic and housing collapse in 2008.
    Much of which began in 1999 under the Clinton administration and was not helped by the Bush administration as well.

    What I am referring to is a long educational process, not being able to be commented in this publication (Way to long)!

    We also must realize that since the crash of 2008 and especially since the passage of the Dodd-Frank bill, many small community banks around the nation have been failing and still are. Most of this has been because of the vast amount of new heavy rules and regulations imposed upon them by the Federal Government. This has come about, VIA the Dodd-Frank bill and instigated by the CFPB, an arm of Dodd-Frank!

    The banks per say get a bad wrap at times because what has been a direct impact by the Federal Government through their over implementation of many unnecessary rules and regulations.

    Don’t get me wrong, I am not taking all the blame off the banks and financial industry, just trying to balance it out for what it really is!

    The entire scenario is very complex but the lack of confidence the American consumer has the banking and financial industry as a whole is not a surprise.

    I just wish the majority of the American consumer really understood and new what the “Bold Truth” was and is!!!!!

    John A. Smaldone
    http://www.hanover-financial.com

string(97) "https://reversemortgagedaily.com/2016/06/23/gallup-most-americans-still-lack-confidence-in-banks/"

Share your opinion