Offsetting Balance — synonyms, definition

1. offsetting balance (Noun)

compensating balance

offsetting balance (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. ex. "the offsetting balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged"

balance