Edge Act corporation

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Edge Act corporation

Corporation chartered by the Federal Reserve to engage in international banking. The Board of Governors acts on applications to establish Edge Act corporations and also examines the corporations and their subsidiaries. Named after Senator Walter Edge of New Jersey, who sponsored the original legislation to permit formation of such organizations. See also: agreement corporation.

Edge Act Corporation

A bank chartered by the Federal Reserve to conduct international banking transactions without needing to abide by the banking laws of an individual state. Edge Act corporations were established by the Edge Act in 1919 and have since undergone several legal revisions. Because banking is more international today there are fewer distinctions between Edge Act corporations and ordinary banks.

Edge Act corporation

A corporation established under the 1919 Edge Act to undertake activities in international banking and investing. The Act gives U.S. firms more flexibility in competing effectively with foreign firms. Corporations established under the Edge Act are often organized in order to finance foreign trade or to own foreign securities.
References in periodicals archive ?
The Banking Group focuses its resources on servicing Florida chartered banks, national banks and foreign bank holding companies, Edge Act corporations, international bank agencies and representative offices of foreign banks in the United States.
Provisions should also be added that would clarify how clearing organizations organized as uninsured state member banks or Edge Act corporations would be resolved in the event of their bankruptcy.
Miami's 13 Edge Act Corporations account for 64% of foreign assets managed by Edge Acts nationwide," said Roussakis, co author of the study.
As you know, the Board's Regulation K governs the international operations of member banks, bank holding companies, and Edge Act corporations.