compensated balance

compensating balance

noun
1.
Also, compensated balance, compensation balance. a balance wheel in a timepiece, designed to compensate for variations in tension in the hair spring caused by changes in temperature.
2.
Banking. a deposit balance that is required to be left on deposit by a company to maintain or guarantee credit.

Origin:
1795–1805

Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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WordNet
compensating 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; "the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged" 
WordNet® 3.0, © 2006 by Princeton University.
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