Meaning COMPENSATING BALANCE: An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided
More terms such as Compensating balance in Dictionary C.
- Definition Characteristic Line:
- Examples The market model applied to a single security; a regression of security returns on the benchmark return. The slope of the regression line is a security's beta compensating balance definition.
- Definition Capital Lease:
- Examples A lease obligation that has to be capitalized on the balance sheet compensating balance explain.
- Definition Countercyclical Stocks:
- Examples Stocks whose price tends to rise when the economy is in recession or the market is bearish, and vice versa compensating balance what is.
- Definition Conventional Mortgage:
- Examples A loan based on the credit of the borrower and on the collateral for the mortgage compensating balance meaning.
- Definition Covered Call:
- Examples position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not compensating balance abbreviation.
