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.
Federal Reserve Chair Jerome Powell said Wednesday Silicon Valley Bank’s collapse and the banking system upheaval it triggered “are likely to result in tighter credit conditions for households and businesses, which would in turn affect economic outcomes.”
In other words: a credit crunch is coming.
Source : Looming Credit Crunch Worries the Fed – Here’s What You Need to Know