Before revision:  Our paper introduces a deliberately simplified network model of insolvency and illiquidity that can quantify how illiquidity or default of one bank influences the  overall level of liquidity stress and default in the network. Under an assumption we call "locally tree-like independence", we derive large-network asymptotic cascade formulas. Results of numerical experiments then demonstrate that these asymptotic formulas agree qualitatively with Monte Carlo results for large finite networks, and quantitatively except when the  system is placed in an exceptional "knife-edge" configuration.
After revision:  Our paper introduces a deliberately simplified network model of insolvency and illiquidity that can quantify how illiquidity or default of one bank influences the overall level of liquidity stress and default in the system. Large-network asymptotic cascade mapping formulas are derived that can be used for efficient network computations of the double cascade. Numerical experiments then demonstrate that these asymptotic formulas agree qualitatively with Monte Carlo results for large finite networks, and quantitatively except when the system is placed in an exceptional "knife-edge" configuration.