Credit crisis

Credit crisis,

Definition of Credit crisis:

  1. The 2007–2008 credit crisis is the only severe example of such an event that has occurred within the memory of most Americans.

  2. A sudden sharp reduction in the availability of money or credit from banks and other lenders.

  3. A credit crisis is a breakdown of a financial system caused by a sudden and severe disruption of the normal process of cash movement that underpins any economy. A bank shortage of cash available for lending is just one in a series of cascading events that occur in a credit crisis.

  4. An economic condition whereby lending availability is tightened due to restrictive intra-bank lending from central banks. The crisis often appears when financial institutions become highly leveraged. This will lead to higher credit requirements for borrowers.

How to use Credit crisis in a sentence?

  1. The credit crunch becomes a credit crisis when lending to businesses and consumers dries up, with cascading effects throughout the economy.
  2. In modern times, the term is exemplified by the 2007–2008 credit crisis that led to the Great Recession.
  3. A credit crisis is caused by a trigger event such as an unexpected and widespread default on bank loans.

Meaning of Credit crisis & Credit crisis Definition