Financial Definition of Compensating Balance
Meaning of Compensating Balance
An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided.
Related Entries of Compensating Balance in the Encyclopedia of Law Project
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Compensating Balance in Historical Law
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Legal Abbreviations and Acronyms
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Concept of Compensating Balance in the context of Real Property
A short definition of Compensating Balance: Funds deposited into a bank, savings and loan association, or other lending institution, to induce the lender to make a specific loan or establish a line of credit. The deposit may be made by the party desiring the loan, or a third party.
Concept of Compensating Balance in the context of Real Property
A short definition of Compensating Balance: Funds deposited into a bank, savings and loan association, or other lending institution, to induce the lender to make a specific loan or establish a line of credit. The deposit may be made by the party desiring the loan, or a third party.
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