Bank Line

Business, Legal & Accounting Glossary

Definition: Bank Line


Quick Summary of Bank Line


A moral, rather than a contractual, commitment by a bank to provide a loan to a borrower up to a stated total amount over a stated period, typically one year.

Because a bank line, also known as a line of credit, is not a legal commitment, it is not usual for a commitment fee to be charged. However, it is often necessary to keep compensating balances on deposit, typically 10% of the bank line plus an additional 10% of actual borrowings. Where customers are officially notified in respect of a line, the term is advised line or confirmed line. In cases where the bank sets an internal guide and the customer is not notified the term is guidance line.



Cite Term


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https://payrollheaven.com/define/bank-line/
Modern Language Association (MLA):
Bank Line. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 03, 2020 https://payrollheaven.com/define/bank-line/.
Chicago Manual of Style (CMS):
Bank Line. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/bank-line/ (accessed: December 03, 2020).
American Psychological Association (APA):
Bank Line. PayrollHeaven.com. Retrieved December 03, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/bank-line/

Definition Sources


Definitions for Bank Line are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 0 Views.