offsetting balance


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Noun1.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"
balance - the difference between the totals of the credit and debit sides of an account
References in periodicals archive ?
Offsetting balance sheet factors include the company's limited liquidity and asset liability management, weak regulatory solvency margin and moderate dependence on reinsurance.
5) Of course, both Banks must have an offsetting balance sheet change, and these involve the ISA: The San Francisco Fed's ISA balance increases by $1 million, and the New York Fed's ISA balance decreases by $1 million.
Offset accounts, such as those offered by Intelligent Finance and the Woolwich, allow customers to keep their accounts separate but lets them reduce their mortgage costs by offsetting balances in current and savings accounts.