But taking advantage of their new freedom, they have been investing money abroad, creating a large capital flight and intensifying the credit shortage.

A survey released today indicated a record low level of confidence among small businesses, which have been the hardest hit by the credit shortage.

Fearful of growing worldwide risks, investors and lenders have pulled back, creating the circumstances for a credit shortage.

Without money on deposit, banks would have no money to lend, making the already existing credit shortage even worse.

But in recent months China has been hit by both inflation, running at an annual rate of nearly 30 percent, and by a severe credit shortage.

The well-publicized credit shortage notwithstanding, there is a lot of capital available for investments that appear to be relatively safe.

Translation: a credit shortage seems to be developing that could stop economic growth dead in its tracks.

It was not so long ago, after all, that companies experienced a credit shortage.

He said the measure could reduce the international competitiveness of banks and produce regional credit shortages.

Banks became reluctant to lend, and the credit shortage helped push the economy into recession.