Edge Act Corporation
Encyclopedia
An Edge Act Corporation is a corporation
chartered by the Federal Reserve of the United States
under the Edge Act
to engage in international banking operations. The Federal Reserve Board acts upon applications by U.S. and foreign banking organizations to establish Edge corporations. The board also examines Edge corporations and their subsidiaries.
These corporations can accept deposits as well as provide loans, so long as these functions are specifically related to international transactions.
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
chartered by the Federal Reserve of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
under the Edge Act
Edge Act
The Edge Act is a 1919 amendment to the United States Federal Reserve Act of 1913,codified as:which allows National Banks to engage in international banking through federally chartered subsidiaries. The Act is named after Walter Evans Edge, a U.S. Senator from New Jersey who sponsored the original...
to engage in international banking operations. The Federal Reserve Board acts upon applications by U.S. and foreign banking organizations to establish Edge corporations. The board also examines Edge corporations and their subsidiaries.
These corporations can accept deposits as well as provide loans, so long as these functions are specifically related to international transactions.