| Global custody banks have had a strong run in recent years, as the slew of stricter rules in the aftermath of the economic downturn has boosted demand for their services. This is because more financial institutions are now turning to custody banks to take care of accounting, back-office and middle-office activities in light of the added complexity in compliance and reporting requirements.
This in turn has helped the assets under custody for the world’s largest custodians grow steadily – earning them handsome fee revenues in the process. However, the size of assets under custody for most custodians took a hit over the last two quarters of 2014 as volatile equity market conditions and the negative impact of marked changes in foreign exchange rates hurt asset valuations in terms of U.S. dollars...............................................Full Article: Source
|