A sudden reduction in the availability of credit from banks and capital markets at given interest rates on bank loans and other credit instruments. The reduced availability can result from many factors, including an increased perception of risk to lenders, an imposition of credit controls, or a sharp restriction of the money supply.
a state in which there is a short supply of cash to lend to businesses and consumers and interest rates are high
an effect of a supply-side recession, not the cause, even if it comes before the technical declaration of a state of recession and even if it makes the recession itself worse
an interruption in the supply of credit which can be caused by destruction of the lenders' incentive through regulatory rigidity, or serious defaults by borrowers on loans taken out during a credit binge
A sudden reduction in the availability of loans and other types of credit from banks and capital markets at given interest rates. The reduced availability of credit can result from many factors, including an increased perception of risk on the part of lenders, an imposition of credit controls, or a sharp restriction of the money supply. See money supply.
A significant, temporary decline in the normal supply of credit, usually caused by tight monetary policy or a regulatory restriction on lending institutions.