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Urdu Meanings, Pronounciation and Synonyms:

compensating balance

(Pronunciation -تلفظ سنیۓ ) US:
Slow
Normal

Noun: compensating balance
1. compensating balance [ Synonyms: offsetting balance]
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";

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