The global financial crisis : its effect on the Maltese

Abstract

The concept of trust and confidence in relation to financial markets is one which is being threatened continuously. Without trust and confidence, the market does not operate as efficiently as it is needed to. As a result of the recent global financial crisis, this concept of trust and confidence has been damaged severely, but to what extent? The main objective of this study is to analyse how the 2008 financial crisis affected local consumer confidence and trust in the banking sector. Hence, the research question associated with this study is ‘’has the 2008 financial crisis affected local consumer confidence and trust in the banking sector?” The results to the research question associated with this study were generated through the use of both postal and online questionnaires, with 665 in total being received, compared to the required 385 as explained in Chapter 3. The aim here was to shed light on the various aspects of the crisis and hence, inform and possibly help investors when making investment decisions. The results may be helpful to customers and ultimately the local economy in general. The surveys focused on the relationship that these stakeholders have with the local banks and if they have suffered in any way as a result of the crisis. Respondents were distinguished between their age, gender, locality and their level of education. Results of the surveys were then inputted onto an excel spreadsheet and SPSS and an in-depth analysis of these results was formulated. The key findings, after the data collected was analysed, showed that 503 respondents (or 75.64%) are still as confident in their bank/s and that 588 respondents (or 88.42%) still trust their bank/s. Upon analysis of the results, recommendations and possible improvements for the future were then discussed and put forward.