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 This act repealed the earlier provision within the McFadden Act prohibiting this practice.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. Adverse Domination

    A legal doctrine that allows regulators to bring litigation against ...
  5. Economic Justice

    Economic justice is a component of social justice. It's a set ...
  6. Special Power Of Attorney

    A special power of attorney grants an agent the authority to ...
Related Articles
  1. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

  2. Dividend Tax Rates: What Investors Need ...
    Taxes

    Dividend Tax Rates: What Investors Need ...

  3. The Chinese Wall Protects Against Conflicts ...
    Options & Futures

    The Chinese Wall Protects Against Conflicts ...

  4. Changing The Face Of Bankruptcy
    Options & Futures

    Changing The Face Of Bankruptcy

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

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

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

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center