"Crony capitalism" refers to situations in which banks make loans to those borrowers with the most:

Question

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Crony capitalism refers to a situation where businesses are given preferential treatment by the government due to their political connections, rather than being judged on their economic merits. In this context, banks may make loans to borrowers with the most political clout, regardless of whether their investment projects are profitable or they are creditworthy.

"Crony Capitalism" Refers to Situations in Which Banks Make Loans