Twenty Percent Rule

Twenty Percent Rule
A deposit requirement instituted by commercial banks for corporate lenders. The twenty percent rule stipulates that borrowers must keep deposits at the bank that are at least equal to 20% of their regular borrowings from their line of credit. However, the exact ratio of this rule is often contingent upon current interest rates and other factors.

The twenty percent rule is also known as a compensating balance. These balances are not usually fixed at a set percentage, such as 20%, the way they used to be. They now tend to range anywhere from 10-25%, and are sometimes even waived with the payment of bank service charges.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Twenty In Ten — In December 2007, President Bush signed the Energy Independence and Security Act (EISA) of 2007, which responded to his Twenty in Ten challenge in the State of the Union Address to improve vehicle fuel economy and increase alternative fuels.… …   Wikipedia

  • Company rule in India — For usage, see British Empire in India Company rule in India Colony of the East India Company ↓ …   Wikipedia

  • Timeline of the 2011 Egyptian revolution under Hosni Mubarak's rule — This article is about timeline of the 2011 Egyptian revolution before Hosni Mubarak s resignation. For subsequent events, see Timeline of the 2011 Egyptian revolution under Supreme Council of the Armed Forces. Main article: Timeline of the 2011… …   Wikipedia

  • ПРАВИЛО ДВАДЦАТИ ПРОЦЕНТОВ — TWENTY PERCENT RULEПрактика некоторых банков, требующих, чтобы получающие ссуду клиенты поддерживали средние остатки депозитов равными приблизительно 20% от таких ссуд. Хотя практика требования определенной пропорции между остатками на счетах и… …   Энциклопедия банковского дела и финансов

  • Origins of the American Civil War — For events following South Carolina s declaration of secession from the Union, see Battle of Fort Sumter and American Civil War. The Battle of Fort Sumter was the first stage in a conflict that had been brewing for decades. The main explanation… …   Wikipedia

  • History of the Jews in Hungary — concerns the Jews of Hungary and of Hungarian origins. Jews have been a present community in Hungary since at least the 11th Century (with earlier references to Jews in Hungary existing), struggling against discrimination throughout the Middle… …   Wikipedia

  • Race (classification of humans) — Race Classification Race (classification of humans) Genetics …   Wikipedia

  • Finland — This article is about the country in Northern Europe. For other uses, see Finland (disambiguation). Coordinates: 65°N 27°E / 65°N 027°E / 65; …   Wikipedia

  • Eurabia —  Pour l’article homonyme, voir Eurabia (revue).  Islam en Europe[1] …   Wikipédia en Français

  • Race (classification of human beings) — The term race or racial group usually refers to the concept of categorizing humans into populations or groups on the basis of various sets of characteristics. [http://www.physanth.org/positions/race.html AAPA Statement on Biological Aspects of… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”