compensating balance

You are here:  Home  »  Investment Dictionary  »  Banking Terms  »  compensating balance

 

A compensating balance is a required minimum amount of funds that a firm receiving a loan must keep in a checking account at the bank.

 

 

 

 

Google
  Web Investionary.com   

 

 

commission » commitment fee » commitment letter » compensating balance » compound interest » conduit borrower » conforming loan

 

Investment Glossary - Investment Articles - Investment Directory