credit squeeze


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.

Credit Squeeze

A situation in which it is difficult to finance through borrowing. A credit squeeze often occurs when economic growth is declining and/or when interest rates rise. The Federal Reserve is often blamed for credit squeezes when they raise target interest rates, but it may occur through private sector actions as well, such as a systemic rise in bad debt. See also: Credit crunch.

credit squeeze

Restricted bank lending that is accompanied by rising short-term interest rates and a decline in economic growth. Credit squeezes are generally attributed to policy actions of the Federal Reserve.

credit squeeze

an attempt by the monetary authorities to reduce the amount of CREDIT granted by financial institutions to consumers and businesses, in order to reduce the level of spending in the economy. A credit squeeze forces up INTEREST RATES, affecting businesses by reducing consumer demand and raising the cost of financing stockholding and investment. See MONETARY POLICY.

credit squeeze

any action taken by the monetary authorities to reduce the amount of CREDIT granted by COMMERCIAL BANKS, FINANCE HOUSES, etc. Such action forms part of the government's MONETARY POLICY directed towards reducing AGGREGATE DEMAND by making less credit available and forcing up INTEREST RATES.
Mentioned in ?
References in periodicals archive ?
They were largely blamed for causing the credit squeeze that brought banks such as Northern Rock to their knees.
Forget the credit squeeze and go and enjoy a good British holiday, three cheers to Messrs Brown and Cameron for leading the way
MANAMA: The international information technology industry remains upbeat despite the recent credit squeeze worldwide, reveals a survey.
The credit squeeze appears to be tightening its grip with five per cent of workers opting to sell their holidays back to the company instead of taking the time out themselves.
The industrial market performed surprisingly well in the third quarter, defying the housing slump, the credit squeeze and slower economic growth.
The move has led to a private credit squeeze as banks cut back on loans to high-risk groups.
President Ahmed Mohammed Ali said that the global credit squeeze and recession has made many countries turn to the Islamic Development Bank more than ever to seek help in their development projects.
The European Commission has authorised a Finnish scheme aimed at providing relief to companies encountering financing difficulties as a result of the credit squeeze in the current economic crisis.
But Bupa said underlying profits rose by 9% to pounds 408.6m excluding the impact of the credit squeeze. Revenue rose by 39% to pounds 5.87bn.
Paris-based French women's clothing store chain Morgan has become the latest High Street nameto fall victim of the credit squeeze after calling in the administrators.
But the bold rate cuts of recent weeks and measures to support SMEs should help prevent a further credit squeeze but the impact is unlikely to be immediate."
Firms were asked about the impact of the credit squeeze and the slowing economy and around 80% reported this was having an effect on their business.

Full browser ?