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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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Words linked to "Compensating balance" :   offsetting balance, balance



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