The amount of money a bank requires a customer to maintain in a non-interest bearing account, in exchange for which the bank provides otherwise free services.
Related information about compensating balance:
- Compensating Balance Definition | Investopedia
The compensating balance is often used to offset a portion of the cost that a bank faces when extending a loan or credit to an individual or business, and is ...
- Compensating Balance - Financial Dictionary - The Free Dictionary
An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided. Compensating Balance. Money from a loan ...
- compensating balance - The Free Dictionary
Noun, 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 ...
- What is compensating balance? definition and meaning
Definition of compensating balance: The amount of money a bank requires a customer to maintain in a non-interest bearing account, in exchange for which the ...
- What is a Compensating Balance?
A compensating balance is a minimum balance that can be maintained in an account and still meet the requirements for a loan. Most...
- How to Calculate Interest Rate on a Compensating Balance ...
When you take out a loan from a bank, it is typically an installment loan -- that is, a loan you pay off in several installments. Depending on your credit history, you ...
- Compensating Balance: Definition from Answers.com
Deposit that a bank can use to offset an unpaid loan. No interest is earned on the compensating balance, which is stated as a percentage of the loan.
- Try a Compensating Balance Loan
THE COMPENSATING BALANCE AMOUNT IS OFTEN MAINTAINED in a checking account. If the borrower fails to repay the loan, the bank can take the money ...