McFadden Act

AAA

DEFINITION of 'McFadden Act'

Federal legislation that gave individual states the authority to govern bank branches located within the state. This includes branches of national banks located within state lines. The act was intended to allow national banks to compete with state banks by permitting them to open branches within state limitations.

INVESTOPEDIA EXPLAINS 'McFadden Act'

The McFadden Act was passed by Congress in 1927. It was modified in 1994 by the Riegle-Neale Interstate Banking and Branching Efficiency Act, which allowed banks to open limited service bank branches across state lines by merging with other banks. This act repealed the earlier provision within the McFadden Act prohibiting this practice.

RELATED TERMS
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which ...
  2. Interstate Banking

    The expansion of banking across state lines. Interstate banking ...
  3. Bank

    A financial institution licensed as a receiver of deposits. There ...
  4. Insurance Defense

    An attorney who specializes in cases relating to insurance.
  5. Licensed For Reinsurance Only

    A license that allows a company to engage in services related ...
  6. Insurance Regulatory Information ...

    A collection of databases and tools used to analyze the financial ...
Related Articles
  1. Taxes

    Changes In Tax Legislation And Regulation

  2. Taxes

    Dividend Tax Rates: What Investors Need ...

  3. Options & Futures

    The Chinese Wall Protects Against Conflicts ...

  4. Options & Futures

    Changing The Face Of Bankruptcy

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center