Perception about large global banks remains low, says report

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Davos | January 20, 2016 6:56 PM

The perception about global banks remains low and was "worse" last year than what was seen after the 2008 financial meltdown, says a report.

world economic forum‘Trust Meltdown’ report is in its seventh year and the latest one has been released as the rich and influential gather at the World Economic Forum (WEF) meet here.  (Reuters)

The perception about global banks remains low and was “worse” last year than what was seen after the 2008 financial meltdown, says a report.

‘Trust Meltdown’ report is in its seventh year and the latest one has been released as the rich and influential gather at the World Economic Forum (WEF) meet here.

The report has been focusing on the image of global banking industry that is projected across media.

“Now in 2016 we look at the results presented in Trust Meltdown 7 with little hope. Surely it can’t get worse… In 2015, the news was even worse than directly after the finance meltdown of 2008, because of the long history of low trust,” it said.

According to the report, in 2015 the problem and the concerns shared with media audiences referred to the future.

Noting that survival of banks is not dependent on normal client relations, it said that instead central banks provide all the cash they need, directly or indirectly. “But without the cash production served by Yellen, Draghi, and their colleagues, the amount of banks still in operation would be significantly smaller,” it added.

In 2014, the report said all economic signs were more or less positive so there was an expectation at the launch Trust Meltdown 6 that there would be a remarkable upswing.

“After all, a number of banks had started to listen to the markets and had put significant changes in place. Yes, the overall rating was a bit better than 2013, but the sector’s overall media reputation was still deeply negative.

“Even worse, the overall negativity was so bad that the top 10 banks were compared unfavourably by the global opinion leading media to the Mafia, Syria’s President Assad, and other figures no one would want as their peer group,” it said.

The report also said that Reserve Bank of India received focus in the UK media because of the strong ties that exist between the two countries. The central bank was “granted the same near neutral image as Western central banks, highlighting the decreasing differences in media treatment of developed and developing markets,” it added.

The report is prepared by Media Tenor International which helps businesses optimise communications and manage reputational risks, among others.

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