compensating balance

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• 27. februar 2016 fra wordnet.princeton.edu

  compensating balance — navneord — engelsk

  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"