Edge Act

The Edge Act is a 1919 amendment to the Federal Reserve Act of 1913, codified as:UNITED STATES CODETITLE 12 - Banks and Banking''CHAPTER 6 - Foreign Banking'' SUBCHAPTER II -- Organization of Corporations to do Foreign Banking, Sections 611-631''which allows National Banks to engage in international banking through federally chartered subsidiaries. The Act is named after the late Walter Evans Edge, an erstwhile, post-World War I U.S. Senator from New Jersey 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.
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Section 25(a) of the U.S. Federal Reserve Act as amended in 1919, to authorize the Board of Governors of the Federal Reserve System to charter corporations (Edge Corporations) in the United States for the purpose of engaging in international or foreign banking or other international or foreign operations.