Synonyms/Hypernyms (Ordered by Estimated Frequency) of noun compensating_balance

1 sense of compensating balance

Sense 1
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")
       => balance -- (the difference between the totals of the credit and debit sides of an account)