compensating balance

compensating balance　补偿性存款额　

an excess balance that is left in a bank to provide indirect compensation for loans extended or services provided.Or money from a loan that a borrower keeps in an account with a lender providing some surety that the lender will be repaid.A compensating balance is especially common with corporate loans.It increases the cost of capital to the borrower because he/she is paying interest on more money than he/she is permitted to use.