Wouldn't this mean there would be a limited amount of credit available to lend out then?
Depends to the lender, on how much they've got and that's going to be the limited amount that they can lend.
Which could then hinder economic/growth expansion? Would be great to get an explanation on this, thank you
I'm not good at explaining about it but since you've mentioned economic growth and expansion, you're seem to be visioning quite big thing on this one. I'm only thinking how it can be done by commoners like me and you and there have been greater explanations about it from Hal and tcb.