Word Pronunciation & Dictionary

compensating balance

Word Rarity Rare

Frequency: 2.99 in modern English

Syllables: com-pen-sat-ing bal-ance
IPA

30

Scrabble Score

19

Letters

5

Syllables

13

Unique Chars

Meaning

n

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

Example Sentences

"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

offsetting balance

Questions

What does compensating balance mean?: 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

How to pronounce compensating balance

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