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 ?
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.
We are seeing a lot more men and boys suffering with eating disorders and there has been a significant amount of adult men being referred since the credit crunch began," said Prof Lacey.
That is more in my mind where things like the credit crunch impact on your thinking, impact on the psychology of spending and they should in my opinion.
Despite the unprecedented downturn, research carried out for The Co-operative Child Trust Funds reveals that more than half (56%) of Welsh children have shown no interest in learning about the credit crunch.
Eight Strategies for Surviving the Downturn" can be downloaded from the ICAEW website's dedicated credit crunch section - www.
The annual top-10 ranking Ernst & Young's 2009 Global Business Risk Survey, published in conjunction with Oxford Analytica, reveals that the top strategic business risks facing companies globally during this year are credit crunch aftershocks, regulation and compliance and deepening recession.
With 17% of divorced men blaming financial problems for the end of their marriage, the credit crunch is putting extra pressure on relationships in trouble.
A BUSINESSMAN has defied the credit crunch and bought four fast fit centres.
pounds ONE in five people have changed their Christmas shopping habits to beat the credit crunch.
Overheard in a City bar: "This credit crunch is worse than a divorce.
There is no denying; we are all feeling its tight pinch-first world, developing world and everyone else in between-we are all in the grip of the Credit Crunch.

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