See Also: Compensating balance(finance)
Compensating Balance(money)
compensating curve(medicine)
compensating emphysema(medicine)
compensating ocular(medicine)
compensating eyepieces(medicine)
Official settlements balance (overall balance)(money)
Official settlements balance (overall balance)(finance)
Tight money or dear money(finance)
off-balance(dictionary)

Compensating Balance (money)


Definition: Amount of money required by a bank to be on deposit for granting a loan (thus increasing the bank's rate of return). The required balance is generally equal to 15 to 20 percent of the amount of loansDefinition: outstanding.

Definition: [crh] An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided.