Why Do Banks Want "A Relationship" If They Want To Reduce Concentration Risk?

[Bryan Hancock]

I recently read a piece by a popular author that observes real estate investors are gypsies when it comes to getting loans. They generally roam from lender to lender to get the best deal at the time for their situation and move on for the next deal.

This seems a bit counterproductive given that banks supposedly want to develop "a relationship" with their borrowers. I hear this time and again when I speak with small bankers. How can this be reconciled with the fact that the bank wants to reduce their concentration risk with a given borrower? How can this "relationship" persist given that it is at odds with the bank's own lending approach?

Thoughts? Ideas? Divine revelations? Is this just really code for the bank not wanting to compete?