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Table of Contents -- compensating balance
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WORDNET DICTIONARY
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compensating balance

RELATED WORDS :

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Noun Phrase

WORDNET DICTIONARY

Noun compensating balance has 1 sense

  • compensating balance(n = noun.possession) 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"
  • is a kind of balance
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