Found 1 items, similar to compensating balance.
English → English (WordNet) Definition: compensating balance compensating balance n : 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” [syn: offsetting balance ]