Edge Act corporation

(redirected from Edge Corporation)

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 ?
Under section 25A of the Federal Reserve Act, an Edge corporation may receive deposits outside the United States and only such deposits within the United States thatare incidental to or for the purpose of carrying out transactions in foreign countries.
One set of conditions permits a foreign bank to establish a branch outside its home state if the establishment and operation of such branch is permitted by the state in which the branch is to be established and the branch limits its deposit-taking to that of an Edge corporation operating under section 25A of the Federal Reserve Act.
Under section 25A of the Federal Reserve Act, an Edge corporation may receive deposits outside the United States and only such deposits within the United States that are incidental to or for the purpose of carrying out transactions in foreign countries.
("SCBI"), at all relevant times an Edge corporation organized under Section 25A of the Federal Reserve Act (12 U.S.C.
The Federal Reserve Board simultaneously announced the termination of the May 14, 2004, consent order to cease and desist against Riggs National Corporation and Riggs International Banking Corporation, Miami, Florida, an Edge corporation. This action reflects the closing of the Edge corporation as of December 31, 2004.
The Federal Reserve Board on May 14, 2004, announced the issuance of a consent order to cease and desist against Riggs National Corporation, Washington, D.C., a bank holding company, and Riggs International Banking Corporation, Miami, Florida, an Edge corporation.
(b) Banking institution means a State member bank; bank holding company; Edge Corporation and Agreement Corporation engaged in banking.
These services, some of which I will describe in some further detail in my testimony, may be performed through a specific department of a commercial bank, an Edge corporation, a nonbank subsidiary, or a branch or agency of a foreign banking organization or in multiple areas of the institution, or such services may be the sole business of an institution.
Santander, with total consolidated assets of approximately $181 billion, is the largest banking organization in Spain.(2) In the United States, Santander operates a branch in New York, New York; and an agency and an Edge corporation in Miami, Florida.
Thus, given the structure of the financial services industry inside the United States, the principle of competitive equity that gave rise to the Edge corporation as a vehicle for conducting a banking business outside the United States argues against a similar vehicle within the United States.
operations of these ten banks, which consisted of twenty-six branches and agencies and one Edge corporation, had total assets of approximately $24 billion.
* Implements recent statutory changes authorizing a bank to invest up to 20 percent of capital and surplus in Edge corporations