credit rationing
noun[U]
ukusFINANCE,BANKING
asituationin whichbanksdo notlendmoneyto all those who would like toborrow, orlendless than borrowerswant:
Theresultsof thebanks'creditrationingarebeginningto show.
Examplesofcredit rationing
credit rationing
Creditrationingis not the same phenomenon as the better-known case of food rationing, common in times of war.
From
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This example is from Wikipedia and may be reused under a CC BY-SA license.However,creditrationingis not necessarily the result of credit shortages but rather of asymmetric information.
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This example is from Wikipedia and may be reused under a CC BY-SA license.However, if every bank charges a higher interest rate than the average rate in the spot market, then there would becreditrationing.
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This example is from Wikipedia and may be reused under a CC BY-SA license.In the academic literature, redlining falls under the broader category ofcreditrationing.
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This example is from Wikipedia and may be reused under a CC BY-SA license.More importantly, food rationing is a result of direct government action, whilecreditrationingis a market outcome.
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This example is from Wikipedia and may be reused under a CC BY-SA license.Two main types ofcreditrationingcan usually be distinguished.
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This example is from Wikipedia and may be reused under a CC BY-SA license.Creditrationingdoes not just caused from asymmetric information but also from limited enforcement in case of default.
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This example is from Wikipedia and may be reused under a CC BY-SA license.Hence, we seecreditrationingas a result of imperfection in capital markets.
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This example is from Wikipedia and may be reused under a CC BY-SA license.Like layoffs in the labor market, there iscreditrationingin the financial market.
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This example is from Wikipedia and may be reused under a CC BY-SA license.Many important studies followed their example, some with competing results, and extended the issue ofcreditrationingto further domains.
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This example is from Wikipedia and may be reused under a CC BY-SA license.These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.