offsetting balance English

Meaning offsetting balance meaning

What does offsetting balance mean?

offsetting balance

— noun (= compensating 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

Synonyms offsetting balance synonyms

What other words have the same or similar meaning as offsetting balance?

offsetting balance English » English

compensating balance