credit crunch


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Credit crunch

A shortage of available credit for businesses and consumers. This situation could arise when lenders are reluctant to lend because of uncertainty of defaults or are willing to lend only at high interest rates thus making it difficult for businesses and consumers to secure credit. The term became popular the financial crisis that began in 2007 when a large number of homeowners either defaulted or were expected to default on mortgages, leading to great stress on the market in which these securitized loans were traded. The ensuing constriction in liquidity caused lenders to cut back on loans resulting in a credit crunch.

credit crunch

A period during which borrowed funds are difficult to obtain and, even if funds can be found, interest rates are very high. Credit crunches were particularly severe before 1980 when the ceilings on interest rates that financial institutions could pay resulted in a drying up of deposits.
References in periodicals archive ?
The competition always attracts a healthy number of entries and stories can be Cardiff-based or have a South Wales flavour, or be something else entirely as long as they contain something surrounding a credit crunch context.
Ahead of the Pre-budget report, Unite the Union presented Gordon Brown and Alistair Darling with ten key priorities - including a freeze on home repossessions as part of government action to spend its way out of the credit crunch and kick-start the faltering economy.
Of the 1,104 responders, 36 per cent stated that the credit crunch was having no effect on their flying habits, while a further 41 per cent said they were still flying the same, but looking to spend less.
But even with the credit crunch, Britain had less unemployment than Margaret Thatcher created and she had no credit crunch to blame.
Mr McGuire said the housing market has returned to stability since the credit crunch,with the low in the market having been reached in 2008.
National eating disorder expert Professor Hubert Lacey, who is medical director of Newbridge House in Sutton Coldfield, where patients are treated on the NHS, said he had seen a noticeable increase of men at his clinics since the credit crunch began to bite.
National eating disorder expert, Professor Hubert Lacey, who is medical director of Newbridge House in Sutton Coldfield, where patients are treated on the NHS, said he had seen a noticeable increase of men at his clinics since the credit crunch began to bite.
Will the credit crunch impact on funds available this summer?
John Hooper, president of the British Gold Panning Association, said: "We think we will be a lot busier this year, with people looking to try their luck, due to the credit crunch.
That number has gone up massively because of the credit crunch.
YOUNGSTERS in Wales are least interested in the credit crunch compared with other UK kids, according to a new survey.
com website have been affected by the Credit Crunch.

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