The impact of bank competition and concentration on industrial growth

This paper studies whether bank competition affects growth of non-banking industries. We find that non-cooperative bank competition and stability promote industrial growth robustly. Bank concentration may also affect growth positively; the latter effect increases for higher levels of competition. •We study the role of bank competition on growth of other industries.•We use a sample of about 6000 banks and 23 industries across 48 economies.•Non-cooperative bank competition and bank stability promote growth robustly.•Bank concentration may also have a positive effect on industrial growth.•The effect of concentration increases in the presence of higher levels of competition.