Edge Act corporation

Edge Act corporation,

Definition of Edge Act corporation:

  1. US bank subsidiary created under the 1919 Edge Act to engage in international banking and investment. International Banking Act of 1978 allows foreign banks also to own Edge Act corporations. It is named after the Acts sponsor, the Republican US Senator Walter Edge (1873-1956) of New Jersey.

  2. An Edge Act corporation (EAC) is a subsidiary of a U.S. or foreign bank that engages in foreign banking operations; these subsidiaries are named after the 1919 Edge Act, which authorized them. The Edge Act, named after the U.S. senator who sponsored it, was an amendment to the Federal Reserve Act of 1913 that was introduced to increase the competitiveness of American financial firms on a global stage.

  3. Prior to the Edge Act, U.S. banks were not allowed to own foreign banks. The legislation – which was sponsored by Senator Walter Evans Edge, a New Jersey Republican – amended the Federal Reserve Act to allow them to do so, subject to approval by the Federal Reserve Board. The Edge Act also exempts banks' foreign subsidiaries from state laws, as the Fed is in charge of monitoring and regulating Edge Act corporations. Since 1978, foreign banks have been allowed to own Edge Act corporations. .

How to use Edge Act corporation in a sentence?

  1. An Edge Act Corporation is an American bank that is granted federal authority to engage in international banking and financial operations.
  2. The law was passed to let U.S. banks better compete with foreign financial firms in the early 20th century.
  3. Edge Act corporations may either take in deposits from and make loans to corporations doing business internationally or make investments in foreign companies.

Meaning of Edge Act corporation & Edge Act corporation Definition