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Finance & Banking vocabulary · Banks & Institutions

Custodian bank

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, custodian bank means: A bank that safeguards clients' financial assets and administers associated settlement and income flows.

In Turkish: saklama bankası

How it is used

Use for asset safekeeping and administration, distinguishing custody from investment selection.

Example sentences

  1. The pension fund appointed a custodian bank to hold its securities.

    The bank holds assets for the fund rather than owning them for itself.

  2. Our custodian bank credited the bond coupon to the fund's cash account.

    Administering investment income is part of the custody relationship.

Common collocations

  • appoint a custodian bank
  • custodian bank fees
  • securitiesFinancial assets that can be bought and sold, such as shares, bonds and bills, which give the owner rights like part ownership or a claim to repayment.
  • settlementThe final step of a payment or trade, when money or securities actually move from one party to the other and the deal is complete.

More terms: Banks & Institutions

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This page explains English vocabulary for learners. It is not financial advice.