Grandfathered Activities


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.

BREAKING DOWN '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.

  1. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  2. Foreign Branch Bank

    A type of foreign bank that is obligated to follow the regulations ...
  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. Grandfather Clause

    An exemption that allows persons or entities to continue with ...
  6. Merchant Bank

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