When bankers make loans they do not have an adverse selection problem.

Name: When bankers make loans they do not have an adverse selection problem.
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Bankers do face adverse selection problem because they may not be able to accurately predict the likelihood of the borrower defaulting on the loan. This can lead to a situation where the bank lends money to someone who has a higher chance of defaulting, which can lead to significant losses for the bank.

When Bankers Make Loans They Do Not Have an Adverse