Economic agents are typically connected in multiple interrelated networks (multiplex). We examine how an initial “seed” network prompts link formation on the multiplex and shapes its equilibrium topology. In a duplex, positive (negative) externalities emanating from strategic complementarity...

In this paper, we study how the interbank market could impact deposit competition and bank profits. We first document two stylized facts: the net interbank funding ratio is negatively correlated with net interest margin (NIM), as well as with the cost-to-income ratio (CIR). To rationalize these...