Custodian Bank
/ˈkʌstəˌdiən bæŋk/
Definitions
- (n.) A financial institution legally responsible for safeguarding a client's securities and assets, managing custody services including settlement, safekeeping, and reporting.
The custodian bank holds the investment fund's assets to ensure their protection and proper management.
- (n.) An entity acting as a fiduciary to administer and protect securities on behalf of institutional investors, ensuring compliance with applicable laws and regulations.
The custodian bank ensures regulatory compliance in handling the pension fund’s securities.
Forms
- custodian bank
- custodian banks
Related terms
See also
Commentary
The role of a custodian bank is distinct from that of an investment bank, focusing primarily on safekeeping rather than underwriting or trading.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.