Depåbank

Depåbank is a term used in several Nordic markets to describe a financial institution that holds clients' securities in custody and provides related post-trade and asset-servicing functions. Unlike a traditional retail bank, whose primary business is taking deposits and making loans, a depåbank focuses on safekeeping and administration of securities.

Typical services include safekeeping and registration of ownership, settlement and delivery versus payment of trades, corporate actions processing (dividends, proxies, splits), income collection, tax reporting, and detailed client accounting. Many depåbanks also offer asset servicing such as securities lending, collateral management, and cash management, as well as reporting, proxy voting, and access to multi-currency handling. They may act as the custodian for investment funds, pension schemes, asset managers, banks, and other institutions.

Legal protection: client assets are segregated from the custodian's own assets and kept in separate accounts; the custodian has fiduciary duties and must adhere to regulatory and supervisory standards.

Context: In Europe and other markets, depåbanks operate within a framework of central securities depositories and clearing houses; they are overseen by national financial authorities and must comply with EU or local regulations concerning custody and risk management. The term is common in Nordic countries, where custodial services form part of the infrastructure for institutional investing.