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 of compensating balance

First recorded in 1795–1805
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2018