Meaning : 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 :
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
Compensating balance ka meaning, vilom shabd, paryayvachi aur samanarthi shabd in Marathi. Compensating balance ka matlab kya hota hai?