State Street and Northern Trust operate in custody banking sector
1 report, 1 independent
Updated Oct 12
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What happened
State Street Corporation and Northern Trust are identified as providers in the custody banking sector. Custodians hold other people’s securities and charge a small fee to keep them safe, which is the defining characteristic of the business model.
From insidermonkey.com
Why it matters
The custody banking model involves charging a toll on large amounts of money, resulting in tiny returns on assets, such as 0.87% for State Street Corporation and 1.28% for Northern Trust. These slim margins translate into double-digit returns for shareholders due to the enormous size of the balance sheet.
From insidermonkey.com
Who's involved
- State Street CorporationUS-based international financial services holding company and custody banking provider
- Northern TrustAmerican financial services company and custody banking provider
Keep exploring
The entities involved
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State Street Corporation
US-based international financial services holding company
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Northern Trust
American financial services company