Credit Crunch


Credit Crunch
An economic condition in which investment capital is difficult to obtain. Banks and investors become wary of lending funds to corporations, which drives up the price of debt products for borrowers.

Credit crunches are usually considered to be an extension of recessions. A credit crunch makes it nearly impossible for companies to borrow because lenders are scared of bankruptcies or defaults, which results in higher rates. The consequence is a prolonged recession (or slower recovery), which occurs as a result of the shrinking credit supply.


Investment dictionary. . 2012.

Look at other dictionaries:

  • credit crunch — ˈcredit ˌcrunch noun [singular] BANKING ECONOMICS when borrowing money becomes difficult because banks are forced to reduce the amount they lend: • One reason for the credit crunch is that bankers fear that regulators are more likely to classify… …   Financial and business terms

  • Credit crunch — Credit crunch  (Credit squeeze) Кредитное сжатие Cитуация в экономике, характеризующаяся высоким уровнем процентных ставок и трудностями с получением кредитов. Словарь терминов и сокращений рынка forex, Forex EuroClub …   Финансовый словарь

  • Credit crunch — For information about the late 2000s credit crisis, see Financial crisis of 2007–2010. For the credit crunch used in closing credits, see Closing credits#Marginalization for television promotion. A credit crunch (also known as a credit squeeze or …   Wikipedia

  • Credit crunch — Un credit crunch (del inglés, crujido , y crédito ), contracción del crédito, restricción crediticia o crisis de crédito (no confundir con crisis de liquidez), es un fenómeno financiero consistente en la reducción del dinero disponible para… …   Wikipedia Español

  • credit crunch — noun a state in which there is a short supply of cash to lend to businesses and consumers and interest rates are high • Syn: ↑liquidity crisis, ↑squeeze • Hypernyms: ↑financial condition * * * credit crunch noun (informal) A sudden and drastic… …   Useful english dictionary

  • Credit Crunch — Resserrement du crédit En sciences économiques, un resserrement du crédit (ou pénurie de crédit voire un étranglement du crédit – on emploie également le terme anglais credit crunch) est une limitation ou une raréfaction du crédit offert aux… …   Wikipédia en Français

  • Credit crunch — Resserrement du crédit En sciences économiques, un resserrement du crédit (ou pénurie de crédit voire un étranglement du crédit – on emploie également le terme anglais credit crunch) est une limitation ou une raréfaction du crédit offert aux… …   Wikipédia en Français

  • Credit crunch — Eine Kreditklemme (auch engl. Credit Crunch genannt) ist eine Geldmarktkrise. Sie tritt ein, wenn eine schlechte Finanzsituation Banken dazu zwingt, die Kreditvergabe zu drosseln oder ganz einzustellen, und ist wesentlich schwerwiegender als eine …   Deutsch Wikipedia

  • credit crunch — A period during which lenders are unwilling to extend credit to borrowers. See also credit squeeze …   Big dictionary of business and management

  • credit crunch — noun A period of economic crisis in which credit and investment capital are difficult to obtain …   Wiktionary


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