Spyros Palligkinis

Supervisor at European Central Bank

Contact: spyros (dot) palligkinis (at) ecb (dot) europa (dot) eu

Important disclaimer: Views expressed in this website are my own and do not necessarily reflect those of the European Central Bank or the Single Supervisory Mechanism.

Working Papers

Trust and the household-bank relationship (2018), ECB Working Paper Series, No. 2184, with M. Ampudia. (link)

We examine the role of trust in households’ decisions to hold a bank account and to switch to a new bank. We explore Italian household-level data that contain restricted information on the banks that the households are doing business with, as well as measures of trust in the households’ main bank and the banking sector. We find that households who distrust the banking sector are less likely to hold a bank account. Moreover, account holders are more likely to switch to a new main bank if they do not trust their current one. The estimated relationships persist over and above a range of socioeconomic variables.

Assessing the financial vulnerability of euro area households (2018). (latest version at SSRN)

This paper introduces a micro-simulation framework that studies the financial vulnerability of euro area households. The framework updates micro-level household balance sheet data using macro-level information on unemployment, wages, inflation and market prices. Importantly, new mortgage contracts are created and existing ones are gradually repaid, while other balance sheet items are updated under a static balance sheet assumption. I show the use of the framework by (i) now-casting financial vulnerability indicators of euro area households in 2016, (ii) assessing this vulnerability under the most recent baseline and adverse macroeconomic scenario of the European Banking Authority, and (iii) assessing the impact of the capped LTV ratios on household financial distress.

Sectoral sales of government securities during the ECB’s asset purchase programme (2016), with R. Adalid. (latest version at SSRN)

The transmission channels of quantitative easing programmes partly depend on which sectors sell the securities that the central bank purchases. This note examines the behaviour of the main euro area sectors in response to the public sector leg of the ECB’s extended asset purchase (APP) programme. For each sector we compare realised net flows of government securities to those that would have occurred in the absence of the programme. We find that most sales are attributable to sectors other than euro area banks, with non-euro area residents standing out as the most responsive sector. We discuss the implications of this finding for the transmission of the QE policy in the euro area.

  • Featured at ECB Economic Bulletin, Issue 4 / 2017: Which sectors sold the government securities purchased by the Eurosystem? (link)

Research Publications

Fire sales by euro area banks and funds: what is their asset price impact? (2020), Economic Modelling, 93, 430-444, with H. Mirza, D. Moccero and C. Pancaro. (link)

Control Thyself: Self-Control Failure and Household Wealth (2018), Journal of Banking and Finance, 92, 280-294, with N. Biljanovska. (link)

Runge-Kutta Methods for Fuzzy Differential Equations (2009), Applied Mathematics and Computation, 209(1), 97-105, with G. Papageorgiou and I. Famelis. (link)

Policy Publications

Measuring the cost of equity of euro area banks (2021), ECB Occasional Paper Series, No. 254, with C. Altavilla, P. Bochmann, J. De Ryck, A.-M. Dumitru, M. Grodzicki, H. Kick, C. M. Fernandes, J. Mosthaf and C. O’Donnell. (link)

Contributor to Macroprudential stress test of the euro area banking system (2019), ECB Occasional Paper Series, No. 226. (link)

Contributor to Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures (2019), ECB Occasional Paper Series, No. 223. (link)

Financial stability implications of crypto-assets (2018), Box 4 at Financial Stability Review, European Central Bank, May 2018, 69-72, with M. Adachi, S. Kördel, L. Steininger and A. van der Kraaij. (link)

Leveraged loans: a fast-growing high-yield market (2018), Box 5 at Financial Stability Review, European Central Bank, May 2018, 74-78, with C. Moldovan. (link)

Contributor to Cross-border bank consolidation in the euro area (2017), Special Feature at Financial integration in Europe, European Central Bank, 41-64. (link)