Definitions of offsetting balance

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Definition of 'offsetting balance'

Princeton's WordNet

1. (noun) compensating balance, offsetting 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 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"

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"offsetting balance." Definitions.net. STANDS4 LLC, 2012. 2 June. 2012. http://www.definitions.net/definition/offsetting balance

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