With respect to U.S. deposit securities (ADRs), a local deposit bank (also known as sub-depository or agent) is a bank located in a country outside the United States, which holds the equivalent number of shares held on the domestic market, represented by an exchange of RELs in the United States, each multiple representing a multiple of the underlying foreign share. This multiple allows ADRs to own a conventional share price for the U.S. market (usually between 20 and 50 $US per share), even if the price of the foreign stock is unconventional when converted directly to U.S. dollars. This bank acts as a deposit bank for the company that places ADRs in U.S. equities.  Deposit agreements are used for a large number of benefit programs such as IRAs and health savings accounts. As a general rule, the agreement describes the payment by the person who is paid to the custodian, who will ensure that the funds are held with a bank or other financial institution. Depending on the nature of the account, the custodian may not be held liable if the employer does not provide the worker with the corresponding means for the benefit. For example, if a business does not contribute to an old age savings plan, any losses are not the responsibility of the custodian. Custodian banks are often referred to as global custodians when they securely retain their clients in several jurisdictions around the world and use their own local agencies or other local deposit banks (“sub-depositors” or “agent banks”) with which they commit to be on their “global network” in each market to hold accounts for their respective customers.
Assets held in this way are generally held by large institutional companies that hold a large number of investments, such as banks, insurance, investment funds, hedge funds and pension funds. A deposit bank or simply a deposit bank is a specialized financial institution that is responsible for guaranteeing the financial assets of a company or person and is not active in “traditional” commercial or retail activities such as mortgages or private loans, branches, private accounts, ATMs, etc. The role of a custodian in such a case would be as follows: with American definitions, a person who holds street name securities and is not a member of a stock exchange holds the securities through a registration chain involving one or more custodians. This is due to the impracticality, deemed unenforceable, of the registration of securities traded on behalf of each holder; instead, custodians or custodians are registered as holders and maintain the securities in a loyalty regime for the final custodians. However, the final custodians remain the rightful owners of the securities. They are not only beneficiaries of the administrator as agents.