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credit crunch

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia 0.04 sec.
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.


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Sensible banks would respond by pulling back exposure everywhere because a credit crunch in an industry like steel or automobiles could have vast implications for debtors in all industries.
Chinese banks cutting loans to rein in growth by DeRosa, David / Los Angeles Business Journal
There are many signs that a credit crunch is already underway.
Cooling China: do international policymakers yet grasp all the global ... by Hale, David / The International Economy
Teikoku cited "institutional financial support [from] the government, a decreasing number of promissory notes due to the credit crunch and avoidance of bankruptcy risk, with controlling investment for new business or facilities.
Asia: Japanese bankruptcies falling, but still high by Heffes, Ellen M. / Financial Executive
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