Compensating balance in economics and finance

155 views Jan 30, 2024

Hello everyone! Today, we're going to explore the concept of compensating balance. In economics and finance, a compensating balance refers to the minimum balance that a borrower must maintain in their account with a lender. This balance is usually a percentage of the loan or credit line and serves as a form of collateral or security for the lender.

#Banking
#Business Finance
#Commercial Lending
#Credit & Lending
#Debt Collection & Repossession
#Debt Management
#Economics