Custodian Bank

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Custodian bank

Applies mainly to international equities. Bank or other financial institution that keeps custody of stock certificates and other assets of a mutual fund, individual, or corporate client. See: Depository Trust Company (DTC)

Custodian Bank

A bank that holds and manages a client's securities or other assets on his/her behalf. For example, the bank may hold stock certificates for the client. This reduces the risk of the client losing his/her assets or having them stolen. A custodian bank provides an investor a place to store assets with little risk. Custodian banks normally require a fee for this service. See also: Safekeeping.

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