Edge corporations

Edge corporations

Specialized banking institutions, authorized and chartered by the Federal Reserve Board of Governors in the U.S., that are allowed to engage in transactions of a foreign or international character. They are not subject to restrictions on interstate banking. Foreign banks operating in the U.S. are permitted to organize and own an edge 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.
References in periodicals archive ?
Regulation K defines the extent of permissible deposit-taking activities of Edge corporations.
Implements recent statutory changes authorizing a bank to invest up to 20 percent of capital and surplus in Edge corporations
2) In addition, Deutsche Bank proposes to acquire the Edge corporations of BT Corp pursuant to section 25A of the Federal Reserve Act (12 U.
As an initial matter, it is important to realize that there are only a handful of banks that engage to any significant extent through Edge corporations in activities not permissible to their parent bank, and these banks engage primarily in various securities activities.
Of those offices, 10 were bank subsidiaries, 147 were branches and agencies, 2 were Edge corporations, and 3 were New York state-chartered Article XII investment companies.
Moreover, the Edge Act directs the Board to create a regulatory climate in which Edge corporations may compete effectively with foreign banks.
b) Banking institution means a State member bank; bank holding company; Edge Corporation and Agreement Corporation engaged in banking.