credit crunch
Banks stop lending
A credit crunch is a sudden, severe reduction in the availability of loans and credit from banks and other lenders.
During a credit crunch, lending standards tighten sharply, interest rates may spike, and businesses and individuals struggle to borrow even with good credit histories.
The term gained wide currency during the 2007–2008 financial crisis: The credit crunch left many homeowners unable to refinance.
- systemic riskEconomy-wide collapse potential
- too big to failRequiring rescue due to scale
- recessionProlonged economic decline
- stock market crashRapid decline in share prices
- collapseSudden structural failure
liquidity crisis · bankruptcy · austerity · crisis · Great Depression · Main Street · bailout · insolvency · economic downturn · deleveraging · capital flight · financial crisis · moral hazard · housing bubble · foreclosure · sovereign debt · default · crash
- economyGDP, money, inflation, inflation rate, GNP
- economic crisisrecession, depression, collapse, downturn, contraction
- creditcreditworthiness, creditors, creditworthy, FICO, FICO score
- economic problemsmarket failure, recession, inflation, deflation, stagflation
- financial crisesfinancial collapse, bank run, economic collapse, bank failure, bank failures
- Financial Crisisfinancial crisis, Great Recession, recession, bank failures, market crash
credit cruncheasy credit
Accessible borrowing terms
credit bubble · easy money · subprime lending · credit availability
credit crunchboom
Loud deep sound
economic boom · bull market · economic expansion · prosperity · recovery
credit, crunch, discredit, credits, credited, accredit, creditor, creditable, accreditation