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What Are Compensating Balance and What Effect Does It Have

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What are compensating balance and what effect does it have on the loan?


Definitions:

Critical Thinking

Engaging in a detailed investigation and judgment of a situation to form an assessment.

Social Psychologist

A professional who studies how individuals think, influence, and relate to one another within the context of society and social interactions.

Negative Perceptions

The inclination to view situations, people, or objects in a pessimistic or detrimental light.

Persistent Human Traits

Long-lasting characteristics or behaviors that are consistent over time and across situations in individuals.

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