What is the difference between an Edge Act bank and an international banking facility?
What will be an ideal response?
Edge Act banks are federally chartered subsidiaries of U.S. banks that are physically located in the United States but are allowed to engage in a full range of international banking activities. Such activities include accepting deposits from foreign customers, trade financing, and transferring international funds. Edge Act banks are not prohibited from owning equity in U.S. corporations, as are domestic commercial banks. Consequently, U.S. parent banks own foreign subsidiaries and affiliate banks through an Edge Act setup. An international banking facility (IBF) is a separate set of asset and liability accounts that is segregated on the parent bank's books, so it is not a unique physical or legal entity. Any U.S.-chartered depositary institution (including a U.S. branch, a subsidiary of a foreign bank, or a U.S. office of an Edge Act bank) can operate an IBF. An IBF operates as a foreign bank in the United States and is consequently not subject to domestic reserve requirements or FDIC insurance regulation. However, IBFs may only accept deposits from non-U.S. citizens and make loans to foreigners. The bulk of an IBF's activities relate to interbank business.
You might also like to view...
In a speech, you should choose words that achieve all of the following EXCEPT
a. add vividness to your ideas. b. steer others toward your goal. c. strengthen a positive image among audience members. d. divide the audience.
Marks, a retailer, wrote and ordered 10 dozen red, white, and blue T-shirts for a July 4th celebration from the Whitney Wholesale Company. Since the Whitney Company did not have the colors requested, it sent blue and white shirts, thinking that Marks could use them. The Whitney Company did not, however, notify Marks that the substitution had been made. Shipping the wrong goods
a. constitutes an acceptance of Marks' offer. b. constitutes a breach of contract. c. has no effect on the formation of a contract. d. constitutes an acceptance of Marks' offer and constitutes a breach of contract.
Private employers are not covered by qualified privilege
Indicate whether the statement is true or false
What is the return to an investor who purchases a stock for $30, receives a $1.50 dividend at the end of the year, and then sells the share for $28.50?
A. 10% B. 0% C. ?5% D. 5%