NEW HORIZONS
By Gordon Platt
With every new regulation that hits global trust and custody banks, a new service is born for subcustodians. Keeping up is expensive and challenging, but nonetheless it is a good time to be in subcustody.
Sub-custodians are not fretting much over the plethora of new rules set up in different markets worldwide in the wake of the global financial crisis of 2008. Whenever a new regulation is implemented it creates an opportunity to introduce a service covering the new requirements—for a fee. However, those subcustodians who want to stay at the top of the pack must invest time and resources to ensure they stay abreast of the changes, no mean feat given the constantly evolving global regulatory landscape.
These firms, which service assets held in trust by custodians, are investing in new systems to guarantee the safety of client assets. Segregation of accounts and careful collateral management are top priorities for subcustodians, which make cross-border investing possible and keep the entire process running smoothly. Meanwhile, margins have become paper thin, and subcustodians are offering volume discounts to attract and maintain clients.
However, there is now a premium being placed on sound advice. On-the-ground subcustody personnel are the eyes and ears of global investors. They are counted on to alert investors to impending risks and opportunities and to handle the mundane tasks associated with corporate actions and taxes. Sub-custodians also interact with local regulators and attempt to ensure that changes are in the best interests of their clients.
In our 10th annual survey of the World’s Best Sub-Custodians, Global Finance selected the institutions that reliably provide the best custody services in 70 countries and nine regions of the world. Our editors and reporters, with input from expert sources, selected the winners based on a series of objective and subjective criteria that include customer relations, quality of service, competitive pricing, smooth handling of exception items, technology platforms, postsettlement operations, backup systems and knowledge of local regulations and practices.
In selecting the winners, we also considered market share, commitment to the business, experience and number of staff, innovation, direct links to depositories, financial soundness and safety and range of assets serviced.
| North America | Citi |
| Western Europe | BNP Paribas |
| Asia | Standard Chartered |
| Latin America | Citi |
| Caribbean | Republic Bank |
| Central and Eastern Europe | UniCredit |
| Nordic Region | SEB |
| Middle East | HSBC |
| Africa | Nedbank |
| Argentina | Citi |
| Armenia | Prometey Bank |
| Australia | HSBC |
| Austria | UniCredit |
| Bahrain | HSBC |
| Belgium | BNP Paribas |
| Brazil | Itaú |
| Canada | CIBC Mellon |
| Chile | Banco de Chile |
| China | ICBC |
| Colombia | Citi |
| Croatia | Zagrebacka Banka |
| Cyprus | Bank of Cyprus |
| Czech Republic | UniCredit Bank Czech Republic |
| Denmark | SEB |
| Egypt | Commercial International Bank (CIB) |
| Finland | Nordea |
| France | BNP Paribas |
| Georgia | Bank of Georgia |
| Germany | Deutsche Bank |
| Greece | Eurobank EFG |
| Hong Kong | Standard Chartered |
| Hungary | UniCredit Bank Hungary |
| Iceland | Íslandsbanki |
| India | Deutsche Bank |
| Indonesia | Standard Chartered |
| Ireland | HSBC |
| Israel | Bank Leumi |
| Italy | Intesa Sanpaolo |
| Japan | Sumitomo Mitsui Banking |
| Jordan | HSBC |
| Kazakhstan | HSBC |
| Kuwait | HSBC |
| Lebanon | HSBC |
| Luxembourg | BNP Paribas |
| Malaysia | Citi |
| Mexico | Banamex |
| Netherlands | BNP Paribas |
| New Zealand | HSBC |
| Nigeria | Stanbic IBTC Bank |
| Norway | Nordea |
| Oman | HSBC |
| Pakistan | Deutsche Bank |
| Paraguay | Banco Itaú Paraguay |
| Peru | Citi |
| Philippines | HSBC |
| Poland | Bank Pekao |
| Portugal | Banco Espírito Santo (BES) |
| Qatar | HSBC |
| Romania | ING Bank |
| Russia | ING Bank |
| Saudi Arabia | SABB |
| Singapore | DBS |
| Slovakia | UniCredit Bank Slovakia |
| South Africa | Nedbank |
| South Korea | KEB |
| Spain | BBVA |
| Sri Lanka | Citi |
| Sweden | SEB |
| Switzerland | Credit Suisse |
| Taiwan | Standard Chartered |
| Thailand | Bangkok Bank |
| Turkey | Deutsche Bank |
| UAE | Standard Chartered |
| Ukraine | UniCredit Bank Unkraine |
| United Kingdom | HSBC |
| United States | Citi |
| Uruguay | Itaú Unibanco |
| Venezuela | Citi |
| Vietnam | HSBC |
World’s Best Subcustodians 2012
