--%>
Assignment Help - homework help

what is Edge Act banks

State what is meant by Edge Act banks.

E

Expert

Verified

Edge Act banks are federally chartered subsidiaries of the U.S. banks that are located in United States which are allowed in order to engage in the full range of international banking activities.  A 1919 amendment to Section 25 of Federal Reserve Act created the Edge Act banks.  Main aim of the amendment was to enable the U.S. banks to be competitive along with the services foreign banks could provide to their customers.  Federal Reserve Regulation K enables Edge Act banks in order to accept the foreign deposits, finance foreign projects abroad, extend trade credit, trade foreign currencies, and engage within the investment banking activities along with the U.S. citizens including foreign securities.  As such, Edge Act banks do not compete directly with services offered by the U.S. commercial banks.  Edge Act banks are not banned from owning the equity in business corporations as domestic commercial banks are. Therefore, it is through Edge Act which U.S. parent banks own foreign banking subsidiaries and have ownership positions in the foreign banking affiliates.

   Related Questions in Financial Accounting

  • Q : Challenges of long distance relationship

    My friend is in a new long distance relationship. My friend wants to ask to identify the challenges or difficulties of long-distance romantic relationships and explain communication strategies for coping with these challenges. The res

    		•
  • Q : Closing entry for financial accounting

    A journal entry that moves the effects of revenues or expenses to the owners' equity account. Only temporary account that is on the income statement is closed. The purpose of a closing entry is twofold. First, it moves revenue to retained earnings on the balance sheet

    		•
  • Q : Uniform costing benefits The uniform

    The uniform costing executed? It is beneficial for an organization?

    		•
  • Q : Calculation Of IRR Calculation Of IRR :

    Calculation Of IRR: IRR is the rate at which your discounted cash inflow becomes equal to your discounted cash outflow. In other words NPV=0. To determine this following steps are followed:- 1. Determine cash inflo

    		•
  • Q : Firms attaining the U.S. firms

    Presently, several foreign firms from both the developed and developing countries attained high-tech U.S. firms. What would have motivated these firms in order to attain the U.S. firms?

    		•
  • Q : Letter of Credit What do you mean by

    What do you mean by Letter of Credit?

    		•
  • Q : Deposit-loan rate spread in Eurodollar

    Explain, how does deposit-loan rate spread within the Eurodollar market as compared to the deposit-loan rate spread in domestic U.S. banking system and why?

    		•
  • Q : Official reserve assets Describe the

    Describe the official reserve assets and some of its important components.

    		•
  • Q : Firm Overview Midterm Project The

    Midterm Project The Midterm Project has two parts. First, using the fact pattern below, develop a list of five to eight goals for the law firm. A goal

    		•
  • Q : Define uniform cost manual Give a brief

    Give a brief introduction of the term ‘uniform cost manual’. And also write down its different contents?

    		•