compensating balance (n)
offsetting balance (n)

n13409850

type n
lex_filenum 21
def a minimum credit balance that a bank may require a borrower to keep on deposit as a condition for granting a loan
def a common requirement for establishing a line of credit at a bank
examples the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged
Outgoing links
Hypernym balance
Incoming links
Hyponym balance

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