compensating balance

Từ điển WordNet v3.1 - WordNet Dictionary

noun

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
• Syn:
offsetting balance
• Hypernyms:
balance