We develop a theory of bank information sharing, highlighting the interactions between credit and labor markets. A better-informed relationship bank competes with a less informed foreign bank for borrowers under asymmetric information about borrowers' creditworthiness. Credit market competition...

We examine the impact of bank competition on the industrial structure using a city-industry level dataset during 2005-2009 in China. We find that bank competition increases the number of firms per capita and decreases average firm size in industries with higher external financial dependence....