compensating balance
Americannoun
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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.
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Banking. a deposit balance that is required to be left on deposit by a company to maintain or guarantee credit.
Etymology
Origin of compensating balance
First recorded in 1795–1805
Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
Memos about the loan also specifically stated that "no compensating balance" was expected from the Georgia bank as a condition of Lance's loan.
From Time Magazine Archive
The Post noted that if the interest-free deposit could be construed as a "compensating balance" for a favorable loan to Lance, the deposit might be an illegal misapplication of the NBG funds.
From Time Magazine Archive
Except for the fact that he had tried to do right, he could see no compensating balance.
From The Honorable Peter Stirling and What People Thought of Him by Ford, Paul Leicester
To lessen this shock, a compensating balance was designed, but which is not now in use.
From Scientific American Supplement, No. 455, September 20, 1884 by Various
Poor Eleonore had no compensating balance of that kind in her favour.
From Laperouse by Scott, Ernest
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
