1. Also,com'pensated bal"ance,compensa'tion bal"ance.a balance wheel in a timepiece, designed to compensate for variations in tension in the hair spring caused by changes in temperature.
2. Banking.a deposit balance that is required to be left on deposit by a company to maintain or guarantee credit.
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.