July 27, 2012 – New data based on a late June survey show that the public is becoming increasingly sour on big banks, while trust in credit unions continues to rise.
The latest Chicago Booth/Kellogg School Financial Trust Index reports that trust in credit unions increased from 58 percent to 63 percent in June, while trust in banks fell to 27 percent, the lowest since the survey began in December 2008.
The bad views respondents said they have of banks bled over into the industry-wide data. The survey found that Americans’ trust in the U.S. financial system overall fell in June to 21 percent, its lowest point since March 2009.
Smaller institutions fared well in the survey. Apart from the positive news on credit unions, 55 percent expressed trust in local banks. That compares with just 23 percent who said they trust “national banks.’’ The survey also found that trust in banks where the government has a stake came in at just 21 percent.
The survey was based on 1,029 interviews conducted from June 20 to 28. The Chicago Booth/Kellogg School Financial Trust Index is conducted on a quarterly basis.