Depositary bank

Depositary Bank

A bank that keeps assets or securities on behalf of a client. All retail banks are depositary banks, because they hold money for account holders.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Depositary bank.

A US bank that holds American depositary shares (ADSs), or shares of corporations based outside the United States, and sells American depositary receipts (ADRs) to US investors is called a depositary bank.

Each ADR represents a specific number of ADSs, based on the bank's agreement with the issuing corporation. The depositary bank ensures that investors receive dividends and capital gains and handles tax payments that may be due in the country where the share-issuing company is headquartered.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
securities that represent foreign shares of a foreign company - require a corresponding number of foreign shares to be held in custody at a depositary bank. The practice of "pre-release" allows ADRs to be issued without the deposit of foreign shares provided brokers receiving them have an agreement with a depositary bank and the broker or its customer owns the number of foreign shares that corresponds to the number of shares the ADR represents.
as successor depositary bank for its American Depositary Receipt programme.
Global Banking News-August 9, 2018-Citi appointed depositary bank for ADR program of Cango
Citigroup Inc's (NYSE: C) Issuer Services business, acting through Citibank, NA, has been appointed by Cayman Islands-based Cango Inc (Cango), as the depositary bank for its American Depositary Receipt (ADR) programme.
An ADR is a receipt that is issued by a depositary bank that represents ownership of a company's underlying shares.
11 May 2011 - US investment bank Citigroup (NYSE:C) said that its Global Transaction Services unit would act as depositary bank for Chinese social networking Internet platform operator Renren (NYSE:RENN).
Global Banking News-December 23, 2010--JP Morgan appointed depositary bank by ShangPharma(C)2010 ENPublishing -
International Resource News-9 October 2009-BNY Mellon selects Pampa Energia acts as depositary bank for ADR(C)2009 ENPublishing -
JP Morgan said it has been appointed the successor depositary bank for the American Depositary Receipt (ADR) program of TNT, the Netherlands-based international express and mail company.
Morgan & Co., New York, as depositary bank, has announced that Grupo Industrial Saltillo, S.A.
They are issued by a depositary bank, which holds the company shares backing the ADRs.