Credit Conditions
Short definition
Credit conditions are the non-price terms of bank credit: collateral, tenor, covenants, limits, documentation. Tightening cuts quantity and flexibility even if the rate is unchanged.
Detailed explanation
“Lending standards” in central-bank and bank surveys are the macro form. The micro form is the pack: MAC, margin calls, dividend lock-ups.
Conditions can stay tight while the policy rate falls; all-in and access are separate channels. The CFO watches both.
Why it matters for the CFO
A limit cut is a faster cash crisis than a wider spread. Conditions bind capacity before pricing does.
How to read it
The same margin with heavier collateral and shorter tenor is de facto tightening. There is no threshold; the pack delta is the measure.
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.