A Custodian Bank is a financial institution that holds and safeguards a client's financial assets, such as stocks, bonds, and cash. Its primary role is to ensure the security of these assets while providing services like settlement, record-keeping, and reporting. Custodian banks are essential for institutional investors, such as mutual funds and pension funds, as they help manage large portfolios efficiently. In addition to asset protection, custodian banks offer various services, including foreign exchange transactions, tax support, and compliance monitoring. By handling these tasks, custodian banks allow investors to focus on their investment strategies while ensuring their assets are managed safely and effectively.