compensating balances
A bank account balance that a corporation agrees to maintain with a current or potential lender.
Compensating balance
An excess balance that is left in a bank to provide indirect compensation for loans
extended or services provided.
Related Terms: ...
compensating balance
deposit that a bank can use to offset an unpaid loan. No interest is earned on the compensating balance, which is stated as a percentage of the loan. The compensating balance increases the effective interest rate the loan.
COMPENSATING BALANCE - A method of paying the bank for providing services. 1. In lending, compensating ...
COMPENSATING BALANCES - are the funds a business might be required to keep in a deposit or reserve acco...
compensating balance An offsetting balance. A requirement by some banks that a borrower maintain a minimum balance in a checking or savings account as a condition of a loan.
Compensating balance:
A deposit account which the bank may require its borrowers to put at its disposal.
Français: Solde compensatoire
Español: Saldo compensatorio ...
Compensating Balance
A minimum balance that must be maintained in an account.
Compensating balances refer to a partial cash collateral requirement in a credit relationship whereby a proportion of a loan that a borrower draws is required to be held on deposit at the lending FI (typically in a zero or low interest account).
Compensating balances are minimum cash balances that must be maintained as support for funds borrowed.
Compensating control ...
A manager also needs to consider the downside of standards and develop compensating balances. For instance, if employees are encouraged to work fast, quality can suffer.
Less time consuming and excludes costs such as compensating balances and INDENTURE CONVENANTS.
Blended Rate (business term)
Interest Method (in accounting)
Net Rate (business term)
Compensating Balance (in accounting) ...
The rate at which banks will lend to their best (prime) customers. The all in cost of a bank loan to a prime credit equals the prime rate plus the cost of holding compensating balances.
Principal: ...
Line of credit - Bank's commitment to make loans to a company for a specified maximum amount for a given period of time, typically one year. There is usually no commitment fee charged on the unused line. However, a compensating balance ...
A group of money managers of similar investment style used to assess relative performance of a portfolio manager.
Compensating balance ...
Compensating Balance
The balance required to be kept on deposit at a bank by a borrower when taking out a loan. Should the borrower fail to repay the loan eithe...(Read more)
Competition Commission ...
 See also: Banks, Compensation, Expense, Bills, Mergers
  
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