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Resources for bankers

Custody Services

Custody services provided by a bank typically include the settlement, safekeeping, and reporting of customers' marketable securities and cash. Securities lending can allow a customer to make additional income on custody assets by loaning securities to approved borrowers on a short-term basis.

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Custody Services (Comptroller’s Handbook, January 2002)
Addresses the fundamentals of securities custody and related services and provides examiner guidance for those activities

BC=Banking Circular
IL=Interpretive Letter

Banking Circular 196, “FFIEC Supervisory Policy—Securities Lending” (May 7, 1985)

Banking Circular 275, “Free Riding in Custody Accounts” (September 3, 1993)

OCC Interpretive Letter 1026, “Securities Conduit Lending Services” (April 27, 2005)

OCC Interpretive Letter 1066, “Risk-Based Capital Treatment for Certain Securities Lending Transactions” (November 8, 2005)

OCC Interpretive Letter 1078, “Custody Trust Ledger Deposit Account Program”
(April 19, 2007)

OCC Bulletin 2002-39, “Investment Portfolio Credit Risks: Safekeeping Arrangements” (October 16, 2002)

Related News and Issuances
Publish DateIdentifierTitle
04/29/2019  OCC 2019-21, Fiduciary Regulations; Non-Fiduciary Custody Activities: Advance Notice of Proposed Rulemaking
09/01/2017  NR 2017-101, Agencies Issue Notice of Proposed Rulemaking to Shorten Settlement Cycle