Pure Play Custodians See Increases in AuC

Assets at the pure play custody banks have risen steadily this year as the force of regulation increases the demand for their services.

Added complexity in compliance and reporting requirements, driven by regulation, means that the four largest custody banks have seen an increased demand for their services, thus generating the fees in order to offset lower interest incomes.

The top four custody banks – BNY Mellon, J.P. Morgan, State Street and Citigroup – have all benefited from stricter regulatory rules, where they are being asked to provide accounting, back office and middle office activities.

This in turn has resulted in an increase in assets under custody for the largest banks, according to data collected by Forbes magazine.

In data collected by Forbes, BNY Mellon saw assets under custody (AuC) rise to $25.1 trillion in the second quarter of 2015, up from $25 trillion in the first quarter.

State Street’s AuC rose to $22,064 trillion in the second quarter of 2015 up from $21,978 trillion in the first quarter.

J.P. Morgan’s assets were $20,497 trillion in the second quarter of 2015, down from $20,561 trillion in the first quarter.

Citigroup’s assets under custody were $15,500 trillion in the second quarter, down from $16,000 trillion.