324:
137:
size of its loans (due to its smaller capital base, compared with that of the agency's parent bank) and the limitation of domestic lending ability to international or foreign business transactions. Of the 82 Edge and
Agreement Corporations in operation at year-end 1999, 27 were Banking Edges located mostly in New York City and Miami with total assets of $ 18 billion.
136:
Legislation in the mid-1990s, providing for the removal of
Federal Interstate Branching restrictions, undermined the appeal of Banking Edges, and their relative importance in international banking has therefore declined. Major disadvantages of a Banking Edge, compared with an agency, are the smaller
94:
By virtue of historical developments and funding considerations, an Edge Act
Corporation is a domestic subsidiary that is generally held by a U.S. Member Bank; however, it may also be held directly by the bank holding company or financial holding Company. As of the International Banking Act of 1978
119:
Investment Edges expand the types of companies in which their parent banks may invest. By law, U.S. banks may invest abroad only in other banking organizations. However an Edge Act
Corporation may invest in any type of foreign company, as long as it does not engage in business in the United States,
115:
An
Agreement Corporation is chartered by a state to engage in international banking (essentially a state-chartered EAC, so named because the corporation enters into an "agreement" with the Fed's Board of Governors to limit its activities to those of an Edge Act Corporation, as if organized under
85:
operating in the U.S. are permitted to organize and own an Edge Act
Corporation. Prior to 1919, U.S. institutions were not permitted to own foreign banks. An EAC can own branches in the U.S., but may only conduct transactions directly linked to international trade.
123:
Banking Edges extend the geographic reach of their parents because an Edge was not considered a bank and hence was not subject to the same interstate banking prohibitions. Thus in the 1960s, the trend was for banks from outside the state of
116:
Section 25A of the
Federal Reserve Act. In reality, state supervision is superfluous, so Edge Act Corporations (rather than Agreement Corporations) are the vehicles of choice for international banking and financing operations.
701:
611:
660:
132:
for conducting international banking and for trading in foreign exchange. In the 1970s and 1980s, the trend was toward expansion into regional financial centers, such as Miami, Chicago, and San
Francisco.
80:
authorizes U.S. and foreign banking and financial organizations to establish Edge Act
Corporations. It also regulates and examines the foreign activities of Edge Act Corporations and their subsidiaries.
684:
617:
577:
678:
584:
1094:
56:
who sponsored the original legislation for these types of subsidiaries. The impetus for the act was to give U.S. firms more flexibility to compete with foreign firms.
629:
511:
250:
45:
1061:
408:
1068:
635:
667:
672:
111:
Investment Edge or
Agreement Corporation functions as an investment company, taking equity positions in foreign commercial and industrial organizations;
565:
104:
Banking Edge or Agreement Corporation, which is directly under control of a U.S. member bank or bank holding company, can receive deposits (without
348:
1009:
641:
499:
403:
105:
1099:
1056:
919:
243:
989:
979:
343:
108:
coverage) from, and make loans to, companies engaging in international business. This structure allows foreign branches of U.S. banks.
822:
553:
280:
25:
969:
929:
856:
846:
694:
647:
571:
275:
1031:
939:
909:
852:
605:
1109:
959:
949:
623:
236:
999:
899:
653:
194:
1104:
290:
145:
As of 1999, the three largest Edges were all holding companies under the Federal Reserve Regulatory District of New York.
37:
905:
895:
836:
713:
559:
541:
535:
423:
270:
185:
In official documents, reference to an Edge Act Corporation typically mentions the state or city where it is domiciled.
21:
547:
733:
313:
417:
769:
745:
505:
494:
179:
65:
68:
is a subsidiary of a bank or bank holding company or financial holding company, that is chartered by the
1051:
727:
721:
529:
459:
77:
517:
488:
308:
285:
751:
592:
483:
429:
178:
In 1999, these institutions accounted for 81.6 percent of all assets (source: Board of Governors,
73:
867:
757:
453:
447:
381:
925:
915:
781:
49:
842:
763:
688:
477:
471:
125:
965:
955:
862:
775:
364:
259:
69:
211:
995:
985:
945:
877:
793:
393:
386:
1088:
975:
935:
832:
811:
599:
376:
129:
223:
1026:
1005:
872:
805:
799:
787:
739:
465:
82:
41:
149:
HSBC International Finance Corporation, an Investment Edge (Wilmington, Delaware)
33:
29:
523:
435:
338:
53:
1073:
1036:
369:
76:, as amended in 1916 and 1919, to engage in foreign banking activities. The
1041:
300:
228:
1046:
95:(IBA), an Edge Act Corporation may also be held by a Foreign Bank.
232:
169:
Banco Santander International, a Banking Edge (Miami)
1019:
886:
821:
712:
679:
Public–Private Investment Program for Legacy Assets
402:
357:
331:
299:
46:Board of Governors of the Federal Reserve System
174:Banco Santander Central Hispano, S.A. (Madrid)
159:Citibank International, a Banking Edge (Miami)
1069:Personal consumption expenditures price index
244:
8:
668:2009 Supervisory Capital Assessment Program
585:Federal Reserve v. Investment Co. Institute
212:Federal Reserve National Information Center
40:to engage in international banking through
673:Term Asset-Backed Securities Loan Facility
251:
237:
229:
1095:United States federal banking legislation
128:to form Banking Edges and locate them in
20:is a 1919 amendment to the United States
349:Monetary Policy Report to the Congress
642:Unfair or Deceptive Acts or Practices
120:including making any domestic loans.
106:Federal Deposit Insurance Corporation
7:
1057:Monetary policy of the United States
636:Emergency Economic Stabilization Act
593:Northeast Bancorp v. Federal Reserve
566:Humphrey–Hawkins Full Employment Act
344:Federal Reserve Statistical Release
630:Subprime mortgage crisis responses
14:
695:Commercial Paper Funding Facility
648:Commercial Paper Funding Facility
1032:Criticism of the Federal Reserve
606:Expedited Funds Availability Act
322:
500:U.S. Treasury Department Accord
702:Corner Post v. Federal Reserve
654:Primary Dealer Credit Facility
206:Federal Reserve Entity look-up
195:International Banking Facility
1:
291:Federal Open Market Committee
661:Bloomberg v. Federal Reserve
560:Electronic Fund Transfer Act
542:Home Mortgage Disclosure Act
536:Equal Credit Opportunity Act
424:National Monetary Commission
1100:66th United States Congress
22:Federal Reserve Act of 1913
1126:
857:Vice Chair for Supervision
554:Federal Reserve Reform Act
548:Community Reinvestment Act
154:HSBC Holdings plc (London)
60:Edge Act Corporation (EAC)
48:. The act is named after
572:International Banking Act
320:
314:Federal Reserve Bank Note
266:
164:Citigroup Inc. (New York)
72:under Section 25A of the
506:Bank Holding Company Act
1110:Federal Reserve System
624:Gramm–Leach–Bliley Act
495:Employment Act of 1946
260:Federal Reserve System
180:Federal Reserve System
52:, a U.S. Senator from
1052:Lender of last resort
728:William P. G. Harding
530:Smithsonian Agreement
460:Emergency Banking Act
286:Federal Reserve Banks
78:Federal Reserve Board
1105:1919 in American law
734:Daniel R. Crissinger
618:FDIC Improvement Act
518:Truth in Lending Act
489:Bretton Woods system
418:Aldrich–Vreeland Act
309:Federal Reserve Note
66:Edge Act Corporation
484:Banking Act of 1935
430:Federal Reserve Act
224:Federal Reserve Act
218:Federal Reserve Act
74:Federal Reserve Act
887:Current presidents
868:Christopher Waller
758:Marriner S. Eccles
472:Glass–Steagall Act
382:Federal funds rate
1082:
1081:
926:Loretta J. Mester
916:Patrick T. Harker
782:G. William Miller
770:William M. Martin
722:Charles S. Hamlin
50:Walter Evans Edge
44:chartered by the
1117:
843:Philip Jefferson
764:Thomas B. McCabe
689:Durbin amendment
478:Gold Reserve Act
326:
325:
253:
246:
239:
230:
1125:
1124:
1120:
1119:
1118:
1116:
1115:
1114:
1085:
1084:
1083:
1078:
1015:
966:Alberto Musalem
956:Austan Goolsbee
888:
882:
863:Michelle Bowman
824:
817:
776:Arthur F. Burns
752:Eugene R. Black
708:
406:
398:
365:Discount window
353:
327:
323:
318:
295:
262:
257:
220:
208:
203:
191:
143:
101:
92:
70:Federal Reserve
62:
36:, which allows
12:
11:
5:
1123:
1121:
1113:
1112:
1107:
1102:
1097:
1087:
1086:
1080:
1079:
1077:
1076:
1071:
1066:
1065:
1064:
1054:
1049:
1044:
1039:
1034:
1029:
1023:
1021:
1017:
1016:
1014:
1013:
1003:
993:
983:
973:
963:
953:
946:Raphael Bostic
943:
933:
923:
913:
903:
892:
890:
884:
883:
881:
880:
878:Adriana Kugler
875:
870:
865:
860:
850:
840:
829:
827:
819:
818:
816:
815:
814:(2018–present)
809:
803:
797:
794:Alan Greenspan
791:
785:
779:
773:
767:
761:
755:
749:
743:
737:
731:
725:
718:
716:
710:
709:
707:
706:
698:
692:
685:Dodd–Frank Act
682:
676:
670:
665:
657:
651:
645:
639:
633:
627:
621:
615:
609:
603:
597:
589:
581:
575:
569:
563:
557:
551:
545:
539:
533:
527:
521:
515:
514:(1961–present)
509:
503:
497:
492:
486:
481:
475:
469:
463:
457:
451:
445:
439:
433:
427:
421:
414:
412:
400:
399:
397:
396:
394:Primary dealer
391:
390:
389:
387:Overnight rate
379:
374:
373:
372:
361:
359:
355:
354:
352:
351:
346:
341:
335:
333:
329:
328:
321:
319:
317:
316:
311:
305:
303:
297:
296:
294:
293:
288:
283:
278:
273:
267:
264:
263:
258:
256:
255:
248:
241:
233:
227:
226:
219:
216:
215:
214:
207:
204:
202:
201:External links
199:
198:
197:
190:
187:
176:
175:
171:
170:
166:
165:
161:
160:
156:
155:
151:
150:
142:
139:
113:
112:
109:
100:
97:
91:
88:
61:
58:
38:national banks
26:12 U.S.C.
24:, codified at
13:
10:
9:
6:
4:
3:
2:
1122:
1111:
1108:
1106:
1103:
1101:
1098:
1096:
1093:
1092:
1090:
1075:
1072:
1070:
1067:
1063:
1060:
1059:
1058:
1055:
1053:
1050:
1048:
1045:
1043:
1040:
1038:
1035:
1033:
1030:
1028:
1025:
1024:
1022:
1018:
1011:
1010:San Francisco
1007:
1004:
1001:
997:
994:
991:
987:
984:
981:
977:
976:Neel Kashkari
974:
971:
967:
964:
961:
957:
954:
951:
947:
944:
941:
937:
936:Thomas Barkin
934:
931:
927:
924:
921:
917:
914:
911:
907:
906:John Williams
904:
901:
897:
896:Susan Collins
894:
893:
891:
889:(by district)
885:
879:
876:
874:
871:
869:
866:
864:
861:
858:
854:
851:
848:
844:
841:
838:
834:
833:Jerome Powell
831:
830:
828:
826:
820:
813:
812:Jerome Powell
810:
807:
804:
801:
798:
795:
792:
789:
786:
783:
780:
777:
774:
771:
768:
765:
762:
759:
756:
753:
750:
747:
744:
741:
738:
735:
732:
729:
726:
723:
720:
719:
717:
715:
711:
704:
703:
699:
696:
693:
690:
686:
683:
680:
677:
674:
671:
669:
666:
663:
662:
658:
655:
652:
649:
646:
643:
640:
637:
634:
631:
628:
625:
622:
619:
616:
613:
610:
607:
604:
601:
600:Greenspan put
598:
595:
594:
590:
587:
586:
582:
579:
576:
573:
570:
567:
564:
561:
558:
555:
552:
549:
546:
543:
540:
537:
534:
531:
528:
525:
522:
519:
516:
513:
510:
507:
504:
501:
498:
496:
493:
490:
487:
485:
482:
479:
476:
473:
470:
467:
464:
461:
458:
455:
452:
449:
446:
443:
440:
437:
434:
431:
428:
425:
422:
419:
416:
415:
413:
410:
405:
401:
395:
392:
388:
385:
384:
383:
380:
378:
377:Federal funds
375:
371:
368:
367:
366:
363:
362:
360:
358:Federal funds
356:
350:
347:
345:
342:
340:
337:
336:
334:
330:
315:
312:
310:
307:
306:
304:
302:
298:
292:
289:
287:
284:
282:
279:
277:
274:
272:
269:
268:
265:
261:
254:
249:
247:
242:
240:
235:
234:
231:
225:
222:
221:
217:
213:
210:
209:
205:
200:
196:
193:
192:
188:
186:
183:
181:
173:
172:
168:
167:
163:
162:
158:
157:
153:
152:
148:
147:
146:
141:Largest Edges
140:
138:
134:
131:
130:New York City
127:
121:
117:
110:
107:
103:
102:
98:
96:
89:
87:
84:
83:Foreign banks
79:
75:
71:
67:
59:
57:
55:
51:
47:
43:
39:
35:
31:
27:
23:
19:
1027:Central bank
1006:Mary C. Daly
920:Philadelphia
873:Lisa D. Cook
853:Michael Barr
806:Janet Yellen
800:Ben Bernanke
788:Paul Volcker
746:Eugene Meyer
740:Roy A. Young
700:
659:
591:
583:
512:FOMC actions
466:Regulation Q
454:Regulation D
441:
184:
177:
144:
135:
122:
118:
114:
93:
63:
42:subsidiaries
17:
15:
996:Lorie Logan
990:Kansas City
986:Jeff Schmid
980:Minneapolis
808:(2014–2018)
802:(2006–2014)
796:(1987–2006)
790:(1979–1987)
784:(1978–1979)
778:(1970–1978)
772:(1951–1970)
766:(1948–1951)
760:(1934–1948)
754:(1933–1934)
748:(1930–1933)
742:(1927–1930)
736:(1923–1927)
730:(1916–1922)
724:(1914–1916)
697:(2020–2021)
675:(2009–2010)
656:(2008–2010)
650:(2008–2010)
632:(2007–2010)
524:Nixon shock
491:(1944–1971)
436:Pittman Act
426:(1909–1912)
409:Antecedents
30:§§ 611
1089:Categories
847:Vice Chair
448:Phelan Act
339:Beige Book
276:Vice Chair
54:New Jersey
1074:Sahm rule
1037:Fed model
970:St. Louis
930:Cleveland
825:governors
612:FIRRE Act
578:DIDMC Act
456:(c. 1930)
370:Bank rate
301:Banknotes
281:Governors
90:Structure
1042:Fedspeak
940:Richmond
910:New York
442:Edge Act
189:See also
126:New York
18:Edge Act
1062:History
1047:Fed put
1020:Related
960:Chicago
950:Atlanta
823:Current
687:(2010;
681:(2009–)
404:History
332:Reports
1000:Dallas
900:Boston
714:Chairs
705:(2024)
664:(2009)
644:(2008)
638:(2008)
626:(1999)
620:(1991)
614:(1989)
608:(1987)
602:(1987)
596:(1985)
588:(1981)
580:(1980)
574:(1978)
568:(1978)
562:(1978)
556:(1977)
550:(1977)
544:(1975)
538:(1974)
532:(1971)
526:(1971)
520:(1968)
508:(1956)
502:(1951)
480:(1934)
474:(1933)
468:(1933)
462:(1933)
450:(1920)
444:(1919)
438:(1918)
432:(1913)
420:(1908)
28:
837:Chair
271:Chair
99:Types
16:The
182:).
64:An
34:631
1091::
1012:)
1008:(
1002:)
998:(
992:)
988:(
982:)
978:(
972:)
968:(
962:)
958:(
952:)
948:(
942:)
938:(
932:)
928:(
922:)
918:(
912:)
908:(
902:)
898:(
859:)
855:(
849:)
845:(
839:)
835:(
691:)
411:)
407:(
252:e
245:t
238:v
32:–
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.