An Edge Act bank is typically located in a state different from that of its parent in order to get around the prohibition on interstate branch banking.

Question

Quizplus · Accepted Answer

This statement is true. Edge Act banks are authorized under the Federal Edge Act of 1919 and are allowed to engage in international banking activities. They are typically located in a state different from their parent company's state of domicile in order to bypass the prohibition on interstate branch banking.

An Edge Act Bank Is Typically Located in a State