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Words in Business News
By Jon Fernquest

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[Thai Economics Library | Archives (for history)]
March 11, 2008

Credit crunch

a credit crunch (noun) - a credit crunch - when businesses and households can't get loans anymore, banks suddenly stop lending and bond market liquidity disappear after investors and holders of capital seek to avoid risk (See The Economist glossary)

a mild credit crunch
a credit crunch is underway
a credit crunch is undoubtedly underway
a generalised credit crunch
the central bank responding to fears of a credit crunch
the government found itself facing a credit crunch
aggravating the credit crunch
a credit crunch is taking place
Y caused a severe credit crunch
a firm hit a credit crunch
ease the credit crunch
measures to ease credit crunch
fears of a credit crunch


Example sentences:

* "A credit crunch is the name economists give to a sudden reluctance among banks to lend money."

* "Typically, a credit crunch happens when banks start to worry about the creditworthiness of their borrowers."

* "A credit crunch, mild, as yet, is undoubtedly under way in America."

* "There is a risk, though, that the supply of credit will start to fall faster than the demand; in other words, that a credit crunch will start to drive the process of credit contraction."

* "The Federal Reserve is struggling to allay fears of a credit crunch when banks are reluctant to lend except to the most creditworthy borrowers."

* The restoration of financial balance will mean that, far from there being a credit crunch, banks are likely to continue to find very little net demand for loans from companies."

* "There is no generalised credit crunch in Japan, but particular firms are being hurt."

* "The Bank of England, responding to fears of a credit crunch, has asked banks to think twice before turning away would-be corporate borrowers."

* "If a banking crisis were to start, the government might find itself facing a credit crunch."

* "This demand on the international capital markets raises interest rates, aggravating the problems of debt and credit crunch."

* "The Federal Reserve chairman said the Fed would do what it could to ease America's credit crunch."

* "They, too, complain of aches and pains, of being squeezed by a credit crunch under which borrowing has become harder even while interest rates have been falling."

* Evidence suggests that a credit crunch is taking place, especially since banks are still under orders from the central bank not to increase lending to property companies beyond the overall rate of loan growth, which has itself been restricted since October."

* "That would cause a severe credit crunch."

* "Debt-laden Tustin, California-based business systems supplier MAI Systems Corp appears to have hit a credit crunch according to today's newspaper."

* "It took special measures to ease the so-called credit crunch, mainly by relaxing regulatory pressures in order to encourage bank lending."

* "Fears of a credit crunch have prompted policy changes at the Federal Reserve in recent months: the Fed has cut its benchmark interest rate four times and, a bolder move, has reduced the amount of reserves that banks are obliged to hold with it against their customers' deposits."


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