Word forms: (regular plural) custodian banks
( Finance : Banking )
The sponsor of these certificates or receipts typically purchases and deposits the
securities in an irrevocable trust or custodial account with a custodian bank.
An amount of cash must be deposited with the broker as initial margin as a good faith
deposit, and is generally maintained in a segregated account at the custodian bank.
A custodian bank is a bank that holds customer assets in safety.
Collins English Dictionary. Copyright © HarperCollins Publishers