compensating balance
1compensating balance — A method of paying the bank for providing services. (1) In lending, compensating balances are minimum balances that the bank requires a borrower to maintain with the bank as partial compensation to the bank for the credit facility. (2) The amount …
2Compensating balance — An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided. The New York Times Financial Glossary * * * compensating balance compensating balance ➔ balance1 * * * compensating balance UK US… …
3compensating 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… …
4Compensating Balance — A minimum balance that must be maintained in an account. The compensating balance is often used to offset a portion of the cost that a bank faces when extending a loan or credit to an individual or business, and is usually calculated as a… …
5compensating balance — 1. Also, compensated balance, compensation balance. a balance wheel in a timepiece, designed to compensate for variations in tension in the hair spring caused by changes in temperature. 2. Banking. a deposit balance that is required to be left on …
6compensating balance — The balance a borrower from a bank is required to keep on deposit as a condition of the loan or for continuing line of credit …
7compensating balance — The balance a borrower from a bank is required to keep on deposit as a condition of the loan or for continuing line of credit …
8compensating balance — A sum of money deposited at a bank by a customer as a condition for the bank to lend money to the customer …
9compensating balance — 1. An amount a bank can offset between a loan and a deposit. 2. Two or more accounting *balances that *offset one another …
10compensating balance — /ˌkɒmpənseɪt bæləns/ noun the amount of money which a customer has to keep in a bank account in order to get free services from the bank …
