Banks consider credit risk information, like that contained in credit ratings, when setting interest rates, amount of loans and other contractual terms… this causes a natural market based discrimination of those perceived as risky. We all know well Mark Twain’s description of a banker: that as the one who lends you the umbrella when the sun shines, and wants it back, urgently, when it looks like it is going to rain.
PS. Just in case, the returns on equity I speak of are of course the risk-adjusted ones.
PS. You doubt what I say? Ask regulators these questions.