Citizens do not expect kindness from state regulators but impartiality and consistency. This conclusion emerges from new research conducted by scholars from Kozminski University. The findings are crucial not only for public institutions but also for the financial sector and business: they help explain how to build credibility, design effective communication and strengthen clients' trust in times of growing uncertainty.
The Regulator as a Guardian, Not a Partner
Trust in public institutions is one of the essential foundations of modern democracies and developed financial markets. In Poland – where institutional trust has historically been low – the question of how citizens evaluate regulators such as the Polish Financial Supervision Authority (KNF) becomes particularly significant.
A research team consisting of Prof. Dominika Latusek-Jurczak, Dr. Anna Pikos, Prof. Frédérique Six and Dr. Marcin Wardaszko conducted an extensive study combining quantitative and qualitative methods. Its goal was to understand what truly builds citizen trust in financial regulators and whether the tools used so far allow this to be measured reliably. The results were published in the article Citizen Trust in Regulators: Evaluating the Validity of the CTGO-Scale in Transitioning Societies in Regulation & Governance (2025).
At the centre of the analyses was the CTGO scale (Citizens’ Trust in Government Organizations) – one of the few international instruments designed to measure trust in specific public institutions rather than the state as an abstract whole. It is based on three key dimensions of perceived institutional credibility: competence (whether the institution can effectively perform its tasks), integrity (whether it acts according to rules and the public interest) and benevolence (whether it considers the welfare of citizens). In the quantitative part of the study, the scale was tested on a sample of more than 1,000 respondents, allowing for a reliable assessment of its applicability in the Polish context.
A Surprising Result: Benevolence Does Not Build Trust
One of the most striking findings is the social mistrust toward the category of benevolence, commonly used in international models of trust. In the Polish context – according to qualitative data – "benevolence" is associated with arbitrariness and the absence of procedures, precisely the qualities citizens want to avoid in public institutions.
As one participant of a focus group put it: “It feels as if they’re doing us a favour by even agreeing to deal with our case.”
Instead, respondents clearly emphasised impartiality, duty and professionalism as the foundations of trust. The authors therefore propose replacing benevolence in measurement models with impartiality. This is one of the first attempts to revise international trust measurement tools based on evidence from low-trust institutional environments.
A Regulator as Essential as Oxygen – Yet Poorly Understood
Although respondents consistently pointed to the KNF as a key institution protecting their interests, their knowledge of its responsibilities turned out to be limited. Most information comes from the media, which tend to focus mainly on crises and scandals. This creates tension between the expectation of confidentiality in supervisory actions and the desire for transparency, which strengthens trust.
Younger respondents even reported feeling ashamed of their lack of knowledge – highlighting the urgent need for better financial education and institutional communication.
Leadership as a Symbol of Credibility
Participants do not assess the regulator solely as an institution but also through the behaviour of its leaders. The head of the KNF – like leaders of other key state agencies – is expected to embody seriousness, professionalism and respect for the public role.
Arrogant, dismissive or overly self-promotional communication was negatively received and undermined trust not only in individuals but also in the entire institution.
Confirmation in Numbers: The CTGO Scale Works in Poland
The quantitative study involving over 1,000 respondents confirmed that the CTGO scale is reliable, valid and well-fitted to the data. It thus supports the scale’s usefulness in environments characterised by low institutional trust – a valuable contribution to global comparative research.
At the same time, the qualitative component shows that the scale requires linguistic and cultural adjustments, especially in the understanding of benevolence.
The Power of Stability, Trust and Responsible Communication
The study’s conclusions clearly indicate that the effectiveness of regulators translates directly into the functioning of financial markets and citizens’ sense of security. For business, this means that stability and predictability become a real competitive advantage.
Companies operating in the financial sector benefit from the fact that the regulator is perceived as impartial and competent. Trust in the KNF strengthens trust in financial institutions, their products and services, and in turn encourages citizens to participate more confidently in the financial market – supporting economic growth.
From a public perspective, trust means a sense of safety. The more clearly the actions of the regulator are understood, the more willing citizens become to make informed financial decisions. The study also identifies areas that require clearer communication and education –especially for younger generations entering the financial services market.
For regulators themselves, the key message is that communication has become a full-fledged tool for building trust. The research team emphasises that not only formal decisions but also the style, tone, clarity and seriousness of communication shape perceptions of public credibility.
In a world where people expect coherence and responsibility, the way regulators communicate matters as much as the regulations themselves.
The project conducted at Kozminski University responds to the global need to analyse institutional trust in times of political and economic turbulence. The study:
- enriches trust theory in the area of public governance,
- provides new tools for research in low-trust environments,
- has direct practical implications for regulators, policymakers and the financial sector.
It is an example of “research that matters” – conducted not in isolation from reality but in response to the needs of society, the economy and public administration.
“Regulatory governance is now one of the key domains in which social trust is shaped. Our research shows that in countries like Poland, the concepts used in international models require redefinition,” emphasises Prof. Dominika Latusek-Jurczak.
The article is based on research by Dominika Latusek-Jurczak, Anna Pikos, Frédérique Six and Marcin Wardaszko titled Citizen Trust in Regulators: Evaluating the Validity of the CTGO-Scale in Transitioning Societies, published in Regulation & Governance (2025).
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