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. Permissible Non-Bank Activities

    Financial business that can be conducted by bank holding companies ...
  3. Nonbank Banks

    Financial institutions that are not considered full-scale banks ...
  4. Controlled Foreign Corporation ...

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

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

    The U.S. corporation insuring deposits in the U.S. against bank ...
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. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. 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 ...
  4. 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 ...
  5. Ratio Analysis

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

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