compensating balance   (TTS Sound)

The compensating_balance has 1 Senses.

• 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; "the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged"
• 銀行が融資を許可する条件として、借り手に預金の継続を要求できる最小の預金残高