Examples of 'credit rationing' in a sentence
Meaning of "credit rationing"
Credit rationing: Refers to the practice of limiting the amount of credit available to borrowers, often imposed by financial institutions during economic downturns
How to use "credit rationing" in a sentence
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credit rationing
Credit rationing may also arise in the.
Plunges in collateral values enhance credit rationing.
Disequilibrium credit rationing can occur for one of two reasons.
Financial and credit considerations effects of credit rationing.
Credit rationing in the size of loans is also known as borrowing constraints.
It also leads to inequitable credit rationing practices.
One of the most damaging legacies of the financial crisis has been persistent credit rationing.
Repressed financial markets and credit rationing favour capital intensity and may perpetuate discrimination.
This is a phenomenon known as credit rationing.
At this point, credit rationing takes place.
Moral hazard is a second factor that can lead to credit rationing.
Thus, credit rationing is possible at equilibrium.
Some governments have tried to address the problem of credit rationing.
By doing this, banks limit credit rationing in this context.
The role of collateral is another issue debated in the literature of credit rationing.
See also
New and rapidly growing firms may also face credit rationing due to lack of collateral.
Therefore, credit rationing occurs in terms of loan size.
These problems cause transaction costs to be so high that credit rationing occurs.
Hence, we see credit rationing as a result of imperfection in capital markets.
Higher agency cost and lower initial assets lead to more credit rationing.
Credit rationing is not necessarily the result of credit shortages, but rather of asymmetric information.
Summary Debates continue in the credit rationing literature.
Empirically, it is extremely difficult to identify instances of credit rationing.
As noted earlier, the effects of credit rationing are far-reaching.
However, they are disproportionately affected by market imperfections, which result in credit rationing.
Essentially, Finland had a bank-centric system with credit rationing being the control mechanism.
For example, this model includes unemployment, which is absent in previous models with credit rationing.
On a conceptual level, credit rationing could have the following consequences,.
Roy Harrod pointed to the existence of credit rationing early on.
This crisis was linked to high household debt, which ultimately led to credit rationing.
Structured-finance solutions can help overcome credit rationing.
As a final point, that improving your debt to credit rationing.
Stiglitz and Weiss ( 1981 ) provide a basic rationale for the presence of such credit rationing.
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