What is a credit crunch?

A credit crunch refers to a dramatic reduction in lending by banks to consumers and businesses, meaning loans become harder to obtain and more expensive. So, what's driving credit crunch fears?

Will there be a credit crunch in the US?

"You're going to see a credit crunch happening in the U.S., and that's starting to get priced into the market in a dramatic way," Mike Novogratz, CEO of Galaxy Digital, an investment management firm, said in an interview with CNBC's "Squawk Box" last week. A severe credit crunch isn't a foregone conclusion, though.

Does the Fed see a looming credit crunch?

The Fed sees a looming credit crunch. What's that? March 24 (Reuters) - It's an old saw: A credit crunch is when your bank won't lend to you. A credit crisis is when banks won't lend to each other.