This paper analyzes the role of bank competition on the life-cycle dynamics of non-financial industries.
Using multi-dimensional data sets, which contain information on job creation and destruction for
establishments in U.S. manufacturing sectors operating in different geographical regions and over time, I
find evidence that bank competition accelerates the expansion of start-ups and helps them to thrive while
young. Once these establishments are mature, however, less competitive banking markets are more
propitious. Specifically, mature establishments expand at higher rates and exit the industry at a slower pace
in less competitive banking markets.