Financial escrow
Financial custody refers to the storage and management of funds, securities and other financial investment products by a third party. It is usually offered by financial institutions, charging corresponding fees to ensure financial security while simplifying the execution of investors' trading activities. Financial custody services not only help investors manage their assets but also provide them with the current state of their assets. It is a financial management service that aims to provide services such as asset management and accounting treatment to its clients. Financial custody services include financial planning, portfolio management, tax management, financial escrow, accounting services, information management, etc.
Financial custody helps to manage the financial assets of investors so that they can effectively track the financial status. It can also help investors build portfolios and increase the yield on their assets if they have multiple assets to manage their risk and get the most out of their resources.
In general, financial custody includes two forms:
1. Deposit custody: The enterprise deposits its own cash into the bank account and signs the relevant custody agreement with the bank, and the bank manages, operates and keeps the funds. Deposit custody usually has a high level of security and liquidity, while also obtaining relatively stable interest income.
2. Asset custody: The enterprise entrusts the management and custody of securities assets such as stocks, bonds, and funds to a professional custodian institution, and pays a certain fee to it according to the requirements and conditions stipulated in the agreement. Asset custody can effectively reduce the investment risk of the enterprise and improve the economic efficiency of the company.