McFadden Act

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.

BREAKING DOWN '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 This act repealed the earlier provision within the McFadden Act prohibiting this practice.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. Branch Banking

    Engaging in banking activities such as accepting deposits or ...
  2. International Banking Act of 1978

    Federal banking legislation that put all domestic bank branches ...
  3. Branch Manager

    An executive who is in charge of the branch office of a bank ...
  4. Foreign Branch Bank

    A type of foreign bank that is obligated to follow the regulations ...
  5. Shell Branch

    A branch location of a U.S. chartered bank located outside the ...
  6. Branch Accounting

    An accounting system in which separate accounts are maintained ...
Related Articles
  1. Markets

    The 4 Biggest Chinese Banks

    Learn how the Chinese banking system is operated and managed, and get information about the top four largest banks in the country.
  2. Insights

    HSBC to Shut Down Half of Retail Branches in India, Shed 300 Jobs (HSBC-PA)

    HSBC will close over half of its retail branches in India to keep pace with global businesses shifting to digital channels.
  3. Investing

    What's a Correspondent Bank?

    A correspondent bank is a bank that acts on behalf of another bank, usually a foreign bank.
  4. Markets

    A Brief History of U.S. Banking Regulation

    From the establishment of the First Bank of the United States to Dodd-Frank, American banking regulation has followed the path of a swinging pendulum.
  5. Personal Finance

    2015's Top Checking Account Promotions

    Open a checking account in 2015 and the bank could give you a cash bonus. Check out these top offers.
  6. Managing Wealth

    The Future Of Mobile Banking (JPM, BAC)

    Typically slow to react to technological change, retail banks are finally recognizing the benefits it provides to consumers as well as the cost savings it gives the firm.
  7. Managing Wealth

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  8. Markets

    2 High-Growth Regional Banks (HOMB, OZRK)

    Here are two regional banks with the potential for more growth thanks to their acquisition strategies.
  9. Personal Finance

    How Americans Can Open a Bank Account In Thailand

    Have your paperwork in order and be sure to shop around.
  10. Markets

    Will “Internet-Only” Banks Change Chinese Banking?

    Private players offering internet-only banking services to a large section of China's population must overcome some challenges to gain market momentum.
RELATED FAQS
  1. Under the Uniform Securities Act, the Administrator of California may examine the ...

    The correct answer is a. The Administrator has jurisdiction over investment advisers, broker-dealers and sales representatives ... Read Answer >>
  2. Should commercial and investment banks be legally separated?

    Find out why market risk isn't created by letting commercial and investment banks merge; it results from moral hazard and ... Read Answer >>
  3. How are investment banks regulated in the United States?

    Read about the extensive regulations placed on investment banks in the United States, beginning with the Glass-Steagall Act ... Read Answer >>
  4. How was Glass-Steagall weakened prior to its repeal?

    Learn about the gradual relaxation of the strict banking regulations under Glass-Steagall, eventually culminating in the ... Read Answer >>
  5. What agencies were created by the Glass-Steagall Act?

    Learn about the Glass-Steagall Act of 1933 that significantly reformed the banking industry, and specifically, what government ... Read Answer >>
  6. Who sets fiscal policy, the president or congress?

    Discover how fiscal policy is set in the United States, including how all three branches of government can affect a given ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center