Thomson Reuters has launched a proprietary index designed to measure trust in global financial institutions called the Thomson Reuters TRrust Index (TRust Index). The index is based on data on the top 50 global financial institutions.
The index is based on a variety of inputs because you cant just have a narrow look at trust, said Scott McCleskey, global head of regulatory intelligence, Financial & Risk, Thomson Reuters.
The index looks at news and social media sentiment, estimates from analysts, data from Thomson Reuters subsidiary StarMine, credit spreads and data on controversy and governance.
Key findings for the first quarter of this year are somewhat mixed. Overall, the inaugural TRust Index metrics reveal a number of encouraging indications that trust and confidence in financial institutions are rebounding as evidenced in positive media sentiment, strong analyst assessment and first-quarter performance in an improving market economy, and tighter credit spreads as a measure of counterparty confidence, McCleskey said.
But continued wariness by investors in the sector, and potential future vulnerabilities in the controversy and governance arena suggest that we are early in the chapter on rebuilding trust in the global financial community, he said.
The TRust Index is based on data on the largest banks, investment banks and investment managers based on market cap. It will be published on a quarterly basis.