Compensating Balance: A Comment
Compensating balance are deposits the borrowing firm keeps with the lending bank in non-interest bearing accounts on loans. It is well known that, when there is no compensating balance imposed, the effective cost of debt remains the same in the two different payment methods, full amortization method...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Utara Malaysia
2004-05-01
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| Series: | International Journal of Banking and Finance |
| Online Access: | https://www.scienceopen.com/document?vid=387fe338-929e-4ccb-8888-204e1bfef7f9 |