15 December 2011 - Definition of ‘Credit Crisis’
A crisis that occurs when several financial institutions issue or are sold high-risk loans that start to default. As borrowers default on their loans, the financial institutions that issued the loans stop receiving payments. This is followed by a period in which financial institutions redefine the riskiness of borrowers, making it difficult for debtors to find creditors.
Read more: http://www.investopedia.com/terms/c/credit-crisis.asp#ixzz1gc7J60zF
