- compensating balance als zelfstandig naamwoord:
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compensating balance
zelfstandig naamwoord
1 compensating balance
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.
synoniem: offsetting balance.
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