Compensating balance in English dictionary

  • compensating balance

    Meanings and definitions of "Compensating balance"

    • noun
      a minimum credit balance that a bank may require a borrower to keep on deposit as a condition for granting a loan; a common requirement for establishing a line of credit at a bank; "the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged"

    Synonyms of "Compensating balance" in English dictionary

    offsetting balance, balance, offsetting balance are the top synonyms of "Compensating balance" in the English thesaurus.

    • offsetting balance · balance
    • offsetting balance

      a minimum credit balance that a bank may require a borrower to keep on deposit as a condition for granting a loan; a common requirement for establishing a line of credit at a bank; "the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged"

  • Compensating balance

Sample sentences with "Compensating balance"

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