BabelNet

bn:00021328n

Noun Concept

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 WordNet 3.0

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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 WordNet 3.0 & Open English WordNet

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 3.0 & Open English WordNet

IS A

balance

WordNet 3.0 & Open English WordNet

compensating balance, offsetting balance