compensating balance

Letters that make compensating balance

s, a, o, b, e, g, l, n, p, c, m, t, i are letters that make 'compensating balance'

Words within compensating balance

lance, LAN, satin, AN, BA, pe, la, ti, comp, ting, pen, MP, SA, NSA, Ba, Sat, at, en, ng, ala, CE, in, balance, tin, Balance, AL, CO, IN, LA, NC, Al, At, Ce, Co, In, La, Ti are words within 'compensating balance'

1 possible definitions for 'compensating balance'

Compensating Balance as "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"

Under this definition, compensating balance is a noun and has the following properties:

Synonyms

offsetting balance has the same meaning as compensating balance

compensating balance as a type

'compensating balance' can be a type of balance.

Example of compensating balance used within this context

"the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged"