depositories

A depository is a facility or institution that holds and safeguards assets, funds, or documents on behalf of others. Depositories provide safekeeping, record-keeping, and transaction-related services to reduce risk and increase efficiency.

In finance, depository institutions include banks and trust companies that accept deposits, extend credit, and offer payment and custody services. They may also act as custodians for customers' financial assets, securities, and valuables.

Central securities depositories, or CSDs, are specialized entities that hold securities in electronic form, maintain ownership records, and settle transfers between participant accounts. They perform dematerialization, safekeeping, corporate actions processing, and collateral management, often under strict regulation and in coordination with clearinghouses.

Depository libraries and archives are institutions that receive copies of publications by legal requirement or subscription, preserving materials for long-term access and providing instruction and research services.

Key functions common to many depositories include safekeeping of assets, accurate record-keeping, settlement and transfer of ownership, risk management, and compliance with regulatory requirements. They may also provide liquidity, collateral handling, and dispute resolution.

Regulation and oversight vary by jurisdiction but generally include prudential supervision, deposit insurance for consumer funds, and securities or market regulators. Notable examples of central depositories include the Depository Trust Company in the United States, Euroclear and Clearstream in Europe, while many countries operate national CSDs and depository institutions.

The term depository derives from Latin depositum, meaning something that has been deposited.