credit crunch

credit crunch definition - finance
A reduction in the supply of credit that occurs when lenders become reluctant to lend funds and tighten their borrowing requirements. A credit crunch typically drives up interest rates and is often associated with a tightening monetary policy.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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