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
Browse or run a search for Compensating Balance in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.
Compensating Balance in Historical Law
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Legal Abbreviations and Acronyms
Search for legal acronyms and/or abbreviations containing Compensating Balance in the Legal Abbreviations and Acronyms Dictionary.
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| Compensating Balance in the Dictionary | Compensating Balance in our legal dictionaries |
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| Related topics | Compensating Balance in the World Encyclopedia of Law |
What is Compensating Balance?
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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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