Loan pricing and Credit Risk

Dummy question.

Can someone please explain the role that the Credit Risk group plays in pricing a loan?
Be it either in corporate banking or IB.

Does the analysis done by Credit Risk determine the interest charged on a loan? Or are banks price-takers and the job of Credit Risk is to only make a yes/no decision on a proposed transaction, given the interest rate that the client is willing to pay?

 

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