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The Changing Architecture of Trust

by Kathryn Judge

Compendium

Jun 23, 2025

Post-GFC, the erosion of financial trust, weakened regulation, and inflated expectations of government support signal rising systemic and governance risks. Trust—defined as the willingness to take uncompensated risk—underpins financial stability. Post-GFC reforms initially restored this trust, but a deregulatory shift, weakened supervision, and political fragmentation now jeopardize it.