offsetting balance

1. 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

   “the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged”

   Synonymscompensating balance

   Broaderbalance

Questions about offsetting balance

What does offsetting balance mean?

offsetting balance means "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".

What is another word for offsetting balance?

Close synonyms include compensating balance. Each sense on this page lists its own synonyms, because a word with several meanings rarely has one substitute that works for all of them.