A credit crunch (English, crack, and credit) or credit crisis (not to be confused with a liquidity crisis) is a financial phenomenon consisting of reducing the money available to lend, limiting the possibilities of borrowing for consumers-what implies a reduction in consumption and investment Corey Ribottsky hedge fund manager for employers-which limits economic growth. It is the opposite phenomenon to excess liquidity, a period of time during which, for various reasons, it is relatively easy to obtain credit, for example, because interest rates are low.
During a credit crunch entities lenders tighten conditions for lending money, either demanding more guarantees, raising the price of money, imposing heavier, and so on.
A liquidity crisis can arise from different causes, and can occur independently of monetary policy official of the Central Bank or by deliberate choice of the latter.
One possible example of a credit crunch may have been the crisis in subprime mortgages.
08 October 2008 AMMAN – Arab Bank Arab Bank enjoys a strong and healthy financial position and credit and the global financial crisis has no impact on the performance, Arab Bank Arab Bank Chairman / CEO Abdul Hamid Shoman said on Tuesday.
- Bangor Daily News
Brewer, the strongest exchange-hour debate on Tuesday between Susan Collins and Tom Allen occurred during the Senate candidates talked about the credit crisis that has resulted in a $ 700 billion federal economic package and investment in penny stocks through management aimed at stabilizing the international financial markets.
- Accountancy Age
The U.S. Securities and Exchange will later today (October 8) gathering of representatives from the financial community to see if there is lessons can be drawn from the current appropriation crisis.
- Bangor Daily News
Brewer, the strongest exchange-hour debate on Tuesday between Susan Collins and Tom Allen occurred during the Senate candidates talked about the credit crisis that has resulted in a $ 700 billion federal economic package and equity invesntements – through and aimed at stabilizing the international financial markets.
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