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Definition of Offsetting balance
1. Noun. 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"
Lexicographical Neighbors of Offsetting Balance
Literary usage of Offsetting balance
Below you will find example usage of this term as found in modern and/or classical literature:
1. Investment Analysis: Fundamentals in the Analysis of Investment Securities by Walter Edwards Lagerquist (1921)
"The real reason for the floating of these particular loans abroad was to check
the flow of gold and create an offsetting balance in trade, thus securing the ..."
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