Bank Line

Business, Legal & Accounting Glossary

Definition: Bank Line

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

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Bank Line. Payroll & Accounting Heaven Ltd.
January 18, 2022
Chicago Manual of Style (CMS):
Bank Line. Payroll & Accounting Heaven Ltd. (accessed: January 18, 2022).
American Psychological Association (APA):
Bank Line. Retrieved January 18, 2022
, from website:

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 | 6 Views.