Edge Act Corporation
Definition of 'Edge Act Corporation'A banking institution with a special charter from the U.S. Federal Reserve to conduct international banking operations and certain other forms of business without complying with state-by-state banking laws. By setting up or investing in Edge Act corporations, U.S. banks are able to gain portfolio exposure to financial investing operations not available under standard banking laws. |
|
Investopedia explains 'Edge Act Corporation'Edge Act corporations have gone through structural changes since they were first implemented in 1919. Economies, and therefore financial institutions, are much more international today, and many of the restrictions once in place limiting foreign banking activity have since been relaxed. Edge Act revisions in 1984 allowed companies engaged in international business, such as trading and shipping firms, and international airlines, to provide full banking services, including taking deposits and granting loans. The Federal Reserve retains the right to monitor ownership of these corporations and their future investment and business activities. |
Related Definitions
Articles Of Interest
-
A Primer On The Forex Market
Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers. -
The Fundamentals Of Forex Fundamentals
Charting is not the only way to analyze the foreign-exchange market. Learn how to apply fundamental analysis to the economic indicators. -
What risks do organizations face when engaging in international finance activities?
When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging ... -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Lessons Learned From the Banking Crisis
There are lessons to be learned on how to handle severe financial downturns, and while the Fed is learning, politicians may not be. -
Austerity: When The Government Tightens Its Belt
When a government tightens its belt in tough economic times the entire nation feels the squeeze. -
A Look Into Foreign Direct Investment Trends
Foreign direct investments play an increasingly important role in countries as an indicator for a healthy economy in terms of economic growth and long-term capital movement. -
Breaking Down The Fed Model
Learn what pundits mean when they say that stocks are undervalued according to the Fed model. -
7 Misconceptions About The Federal Reserve
There are many fallacies about the Fed. The following misconceptions are among the most popular. -
The Link Between The Fed, Money, Debt And Taxes
Assets on the Fed's balance sheet, money supply level, national debt level and economic production should be maintained in equilibrium.
Free Annual Reports