FROZEN CREDIT, credit (generally bank loans) which has been extended but which the creditors find it impossible or highly inexpedient to collect at maturity or at any given time. Banks may make loans to corporations which are apparently in good financial condition and yet which, upon the maturity of the loan, are, temporarily at least, unable to liquidate. To enforce payment might result in financial embarrassment or bankruptcy of the borrowing firm, which with an extension of the loan might continue successfully. In such a case the bank will often renew or extend the loan, and this credit is said to be frozen, a term signifying the opposite of "liquid" as applied to credit, capital or assets.