financial crisis

Definition

An economic recession or depression caused by a lack of necessary liquidity in financial institutions. A financial crisis may be caused by natural disasters, negative economic news, or some other event with a significant financial impact. Financial crises tend to cause decreases in business activities, leading to a self-reinforcing intensification of the crisis.

Use financial crisis in a sentence

You need to try and keep things steady during a financial crisis and come up with new ways to adapt.

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The new company will face a financial crisis if it does not improve sales within the next 2 months, the company owner fears.

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The financial crisis occurred because of the centralized nature of the united states financial institutions because if one fails it affects all negatively.

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AIG National Credit Union Administration