compensating balance
noun[C]
ukusBANKING
theamountofmoneythat acustomerwho has taken out aloanwith abankor who uses the bank'sservices, has tokeepin anaccount. Thismoneydoes notearninterest:
Restrictions mayincludelegallyrestricteddepositsheldascompensatingbalancesagainstshort-termborrowingarrangements.