The Interplay of Governance Perception, Bank Trust, and Subjective Well-Being

This study aims to explore the mediating role of governance perception in the relationship between bank trust and subjective well-being. The study utilizes Neo-institutional theory to examine how individuals' evaluations of governance quality influence their trust in financial institutions Drawing on data from the World Values Survey, including over 85,000 participants across 66 countries, the study demonstrates that individuals who trust their banks report higher happiness, life satisfaction, and financial satisfaction. Moreover, governance perceptions amplify these relationships, with better governance enhancing the positive effects of bank trust on SWB. The findings highlight the role of governance perception as a critical mediator in this relationship, expanding the understanding of SWB and emphasizing the need for institutional transparency, legitimacy, and fairness to foster trust and enhance societal well-being.