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It is suggested part of commercial banks' strategy in managing credit risk involves the following two features: 1. Some banks specialize in lending to particular

It is suggested part of commercial banks' strategy in managing credit risk involves the following two features:

1. Some banks specialize in lending to particular industries.

2. Banks are eager to maintain long-term customer relationships.

While these actions are useful, discuss what sorts of problems can arise for commercial banks if theses two actions are used too much.

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