What is another word for compensating balance?
Pronunciation: [kˈɒmpənsˌe͡ɪtɪŋ bˈaləns] (IPA) 
Compensating balance is a term used in finance and banking to refer to the minimum balance that a borrower must have in their account to offset the cost of borrowing, or to compensate the lender for the risk involved. Synonyms for compensating balance include required balance, offset balance, minimum balance, reserve balance, excess balance, and compensating deposit. Each of these terms refers to the same concept, which is the amount of funds that a borrower must have in their account to ensure the lender's protection against default. Other similar terms might include collateral, security, or guarantee, all of which refer to measures taken to manage the risks involved in lending and borrowing.
