A non-interest paying bank deposit maintained by the borrower that induces the bank to make credit available to the borrower on more favorable terms than would otherwise be available.
The amount of funds a bank requires a borrower to keep on deposit during the term of a lease.
excess balances left in a bank account to provide indirect compensation for loans or services.
The average balance agreed to, that a borrower must keep on deposit with a bank, usually agreed to as a result of a financing or loan agreement, or as a requirement for the bank to "hold" credit available, such as in the case of a revolving credit line.
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"
an account balance that the firm agrees to maintain
An offsetting balance. A requirement by some banks that a borrower maintain a minimum balance in a checking or savings account as a condition of a loan.
a bank's excess balance left to provide loans or other services
A provision described in a loan which requires the borrower to keep a certain amount of money on deposit with the lender. This is to compensate for getting the loan.
Money a bank requires a company to leave in a deposit account as part of a loan agreement.
Requirement of a lender that the borrower keep a specified balance on deposit with the lender.