offsetting balance

Noun
  1. 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 (synset 113431023)
    "the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged"
    is a type of: balance - the difference between the totals of the credit and debit sides of an account
    same as: compensating balance

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