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Polestar or Padlock 8. Managing credit risk Suppose that Polestar bank extends loans almost exclusively to firms in the auto industry, while Padlock bank extends

Polestar or Padlock

8. Managing credit risk Suppose that Polestar bank extends loans almost exclusively to firms in the auto industry, while Padlock bank extends loans to firms in a wide range of Industries. All else equal, will have a higher exposure to credit risk

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