External Economics Seminar - Utz Weitzel // CANCELLED

When
27-02-2020 from 11:30 to 12:45
Where
Meeting Room Buffer Rechts, campus Tweekerken, building Sint-Pietersplein 7, Ghent
Language
English
Contact
economics.seminars@ugent.be
Add to my calendar

Due to illness of guest speaker Utz Weitzel, the seminar will not take place.

 

We are pleased to invite you to the External Economics Seminar by Utz Weitzel

I swear! Reminder of the Banker's Oath and financial advice”

Authors: Utz Weitzel, Michael Kirchler

The seminar will be held on Thursday 27 February between 11h30 and 12h45 in class room 0.1, Sint-Pietersplein 7, ground floor. After the seminar a sandwich lunch will be provided for participants (in meeting room Buffer Rechts). Please register by 25 February at: https://doodle.com/poll/5vsia8vbpyqnycga.

Abstract:

The Netherlands is worldwide the first country that has implemented the so-called Banker's Oath. Since 2015 every employee working in the financial sector in the Netherlands (more than 200.000) is legally required to take this oath. With this pledge the employee commits to put the customer’s interest first and to comply with certain rules of conduct. Employees are personally responsible for compliance and can be held accountable for non-compliance. We study whether reminding bank employees of their oath affects their financial advice in an ethical dilemma. In a large-scale audit study, 67 mystery shoppers visited 201 bank branches and confronted bank employees with a conflict of interest. Our baseline results show that much of the financial advice was not in the customer's but in the bank's interest. Reminding bank employees of their oath did not bias the financial advice toward costumer interests. This also applies to a control treatment, where bank employees were reminded of customers' interests without mentioning the oath. In two additional surveys, we asked a representative sample of the Dutch population as well as employees who work in financial regulation and policy to predict the outcome of the audit study. Both groups expected a positive effect of the oath reminder on financial advice.

 

External Economics Seminars are expected to be attended by all PhD students of the Department of Economics (as part of the PhD training) and is strongly recommended to other members of the department (ZAP and postdocs).

 

Kind regards, 

 

Economics Seminars Team