Spyros Palligkinis

Repository of research and policy publications

Topics: banking supervision, financial stability, household finance.

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, the Eurosystem or the Single Supervisory Mechanism. 

Working Papers

Bank lending rates and the riskiness of euro area household loans (2024). (latest version at SSRN)

I assess the impact of the recent hike in bank lending rates on euro area retail borrowers using a novel micro-simulation framework that updates household-level data of a recent representative survey with up-to-date macro-financial information. The key novelty is that existing mortgages are gradually repaid, and new ones are extended, a feature necessary for medium-term simulations in a period of sizable credit growth. Although debt-to-income ratios are slightly declining, debt servicing has become more demanding since bank lending rates have started increasing. Effects are stronger for borrowers holding adjusted rate mortgages and especially for the more recent among them. The levels of loans held by households in distress has increased.

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, ECB WP)

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

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

Sectoral sales of government securities during the ECB’s asset purchase programme (2016), with R. Adalid, mimeo. (latest version at SSRN, featured at ECB Economic Bulletin, Issue 4 / 2017)