What is meant by Credit crunch?

[jainthomas]

Hi...


The term that I noticed from a media that explained the crisis that we undergo,


In that documentary program they stress the word credit crunch,they used that word more than ten times,so I was little bit confused by that word and I have been searching for the proper and meaning full explanation from the experts those who are familiar with this jargon

 

[theBrain]

Hi,


in terms of business credit crunch or finance crunch is a reduction in the general availability of loans or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates.