--%>
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 : Evaluating the cost of intangible asset

    How to evaluate the cost of intangible asset?

    		•
  • Q : Accounting estimate Normal 0 false

    Normal 0

  • Q : Accounts and Bills payable-Accounts and

    Illustrate the difference between Accounts and Bills payable, Accounts and Bills receivable?

    		•
  • Q : Define Liabilities Liabilities mean the

    Liabilities mean the amount which the firm owes to the outsiders. Liabilities are of two types: -Long term liabilities & Short term liabilities. Examples of long term liabilities are long terms loans, bonds etc. & examples of short term liabil

    		•
  • Q : Functions of Bank Write some of the

    Write some of the functions of Bank?

    		•
  • Q : French Association of Private Companies

    In the year 1995, working group of the French chief executive officers was formed by the Confederation of French Industry (CNPF) and the French Association of Private Companies (AFEP) for studying the structure of the French corporate governance. Group has reported th

    		•
  • 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?

    		•
  • Q : Major reasons of current account

    In contrast to the U.S., Japan has observed constant current account surpluses. What would be the major reasons for such surpluses? Is it advantageous to have constant current account surpluses?

    		•
  • Q : Define Revenue Revenue : The amount

    Revenue: The amount (sum) of money which a company really receives throughout a specific period, comprising discounts and deductions for the returned merchandise. This is the "top line" or "annual income" figure from which costs are subtracted to find

    		•
  • Q : Super Profit Method in Goodwill Super

    Super Profit Method: (Goodwill method): When a firm earns huge profit in comparison to normal profit (usually earned by other firms of similar industry) then the difference is termed as Super Profit. Goodwill is computed on the basis

    		•