Edge corporations can be established by both US and foreign banking organizations. These corporations can, subject to certain limitations, engage in a variety of international banking activities, including accepting deposits and providing loans, but only with respect to international transactions. Edge corporation subsidiaries of US banks may engage in some activities in the US if they are incidental to international or foreign business. Edge corporations may also make certain foreign investments that their US bank parents are not permitted to make directly. The Federal Reserve Board's rules regulating Edge corporations and international banking activities are found at Regulation K (12 C.F.R. pt. 211).
An alternative to an Edge corporation is an Agreement corporation, which functions under the same rules as Edge corporations but is chartered by a state.