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Compensating balance   /kˈɑmpənsˌeɪtɪŋ bˈæləns/   Listen
Compensating 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.  Synonym: offsetting balance.





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"Compensating balance" Quotes from Famous Books



... of our tints it is possible to make different colours in a pattern tell clearly. To relieve red upon blue, for instance, one would use an orange red upon greenish blue, or scarlet upon a gray blue—the general principle being apparently a kind of compensating balance between colours, so that in taking from ...
— Line and Form (1900) • Walter Crane


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