Definition of Compensating Balance in English :
Define Compensating Balance in English
Compensating Balance meaning in English
Meaning of Compensating Balance in English
Pronunciation of Compensating Balance in English
Compensating Balance pronunciation in English
Pronounce Compensating Balance in English
Compensating Balance
see synonyms of compensating balanceNoun
1. compensating 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
Example Sentences:'the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged'
WordNet Lexical Database for English. Princeton University. 2010.