Why do banks engage in credit rationing? If a potential borrower appears to be a poor credit risk, why don't banks simply charge a high enough interest to compensate for the increased probability of default?

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The Answer of Why do banks engage in credit rationing? If a potential borrower appears to be a poor credit risk, why don't banks simply charge a high enough interest to compensate for the increased probability of default?

Why Do Banks Engage in Credit Rationing? If a Potential