In this paper, we provide first empirical evidence that peer effects matter for banks' deposit demand. We construct a novel measure that depicts for each county how exposed peers are to a specific bank in a given year. This granularity allows us to tightly identify the causal effect of peer...

I use a policy of the Reserve Bank of India from 2005 that incentivizes banks to set up new branches in underbanked districts, defined as having a population-to-branch ratio larger than the national average. In a regression discontinuity design, I compare households in districts just above and...