Grandfathered Activities

AAA

DEFINITION of 'Grandfathered Activities'

Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United States, but which were acquired or engaged in before a particular date and are therefore subject to the older rules. Such activities may be continued under the "grandfather" clauses of the Bank Holding Company Act and the International Banking Act of 1978.

INVESTOPEDIA EXPLAINS 'Grandfathered Activities'

Any law can have a grandfather clause that allows the old rule to apply to existing situations and the new rule applies to all futures situations. To grandfather is to grant such an exemption.


RELATED TERMS
  1. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  2. Controlled Foreign Corporation ...

    A corporate entity that is registered and conducts business in ...
  3. Commercial Bank

    A financial institution that provides services, such as accepting ...
  4. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  5. Merchant Bank

    A bank that deals mostly in (but is not limited to) international ...
  6. Grandfather Clause

    An exemption that allows persons or entities to continue with ...
Related Articles
  1. Analyzing A Bank's Financial Statements
    Fundamental Analysis

    Analyzing A Bank's Financial Statements

  2. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  3. Using Economic Capital To Determine ...
    Personal Finance

    Using Economic Capital To Determine ...

  4. How Basel 1 Affected Banks
    Personal Finance

    How Basel 1 Affected Banks

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center