English dictionary
offsetting balance meaning and definition
Definition and meaning of offsetting balance at MeaningMonkey.org. offsetting balance meaning and definition in the English Dictionary.OFFSETTING BALANCE noun
Definition of offsetting balance (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"
- synonyms: compensating balance
Source: Princeton University Wordnet