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- Dictionarycredit crunch/ˈkrɛdɪt ˌkrʌntʃ/
noun
- 1. a sudden sharp reduction in the availability of money or credit from banks and other lenders: "the beleaguered company has become the latest victim of the credit crunch" Similar Opposite
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Aug 27, 2021 · A credit crunch is a decline in lending activity by financial institutions due to a shortage of funds. It often occurs in recessions and results in higher interest rates, lower borrowing, and slower economic growth.
A credit crunch (also known as a credit squeeze, credit tightening or credit crisis) is a sudden reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from banks.
Jun 30, 2022 · A credit crunch is a lack of funds available in the credit market, making it difficult for borrowers to obtain financing. Learn how a credit crunch occurs, its effects on the economy, and some examples of recent crunches.
A Credit Crunch, Credit Crisis, or Credit Squeeze occurs when the general availability of credit declines considerably. We also use the term when it suddenly becomes more difficult to get a bank loan. The decline in the availability of credit occurs regardless of interest rates.
Oct 1, 2019 · A credit crunch occurs when loans are very expensive and difficult to obtain. How Does a Credit Crunch Work? During a credit crunch, lending institutions are limited as to the amount of funds they can use to make loans. Lenders are afraid borrowers will default, and interest rates increase as a way to compensate lenders for this increase in risk.
CREDIT CRUNCH definition: 1. economic conditions that make financial organizations less willing to lend money, often causing…. Learn more.
Jun 23, 2017 · A credit crunch (also known as a credit squeeze or credit crisis) is a reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from the banks.
