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Eleonora Sfrappini

Eleonora Sfrappini
Current Position

since 10/19

Economist in the Department of Financial Markets
 

Contributor International Banking Library

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

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Research Interests
  • financial regulation
  • international banking
  • environmental macroeconomics
  • International Banking Library

Eleonora Sfrappini joined the Department of Financial Markets as a doctoral student in October 2019. Her research focuses on banking, financial regulation and climate finance.

Eleonora Sfrappini received her bachelor's degree from Free University of Bozen-Bolzano and her master's degree from Julius-Maximilians-Universität Würzburg. She also spent a semester at Özyeğin University, Turkey. In 2021 she was awarded the Lamfalussy Research Fellowship by the ECB.

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Eleonora Sfrappini
Eleonora Sfrappini
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Publications

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Completing the European Banking Union: Capital Cost Consequences for Credit Providers and Corporate Borrowers

Michael Koetter Thomas Krause Eleonora Sfrappini Lena Tonzer

in: European Economic Review, September 2022

Abstract

The bank recovery and resolution directive (BRRD) regulates the bail-in hierarchy to resolve distressed banks in the European Union (EU). Using the staggered BRRD implementation across 15 member states, we identify banks’ capital cost responses and subsequent pass-through to borrowers towards surprise elements due to national transposition details. Average bank capital costs increase heterogeneously across countries with strongest funding cost hikes observed for banks located in GIIPS and non-EMU countries. Only banks in core E(M)U countries that exhibit higher funding costs increase credit spreads for corporate borrowers and contract credit supply. Tighter credit conditions are only passed on to more levered and less profitable firms. On balance, the national implementation of BRRD appears to have strengthened financial system resilience without a pervasive hike in borrowing costs.

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Working Papers

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Climate Change-Related Regulatory Risks and Bank Lending

Isabella Müller Eleonora Sfrappini

in: ECB Working Paper, No. 2670, 2022

Abstract

We identify the effect of climate change-related regulatory risks on credit real-location. Our evidence suggests that effects depend borrower's region. Following an increase in salience of regulatory risks, banks reallocate credit to US firms that could be negatively impacted by regulatory interventions. Conversely, in Europe, banks lend more to firms that could benefit from environmental regulation. The effect is moderated by banks' own loan portfolio composition. Banks with a portfolio tilted towards firms that could be negatively a affected by environmental policies increasingly support these firms. Overall, our results indicate that financial implications of regulation associated with climate change appear to be the main drivers of banks' behavior.

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