Custodian Banks vs. Traditional Banks
The difference between custodian banks and traditional banks is their primary roles.
Custodian banks are responsible for, above all, the safekeeping of financial assets belonging to individuals or institutions.
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They may also offer services related to that primary role. However, they don't offer the same types of services provided by traditional banks.
Traditional banks are financial institutions with the primary role of taking and holding deposits for customers and extend loans to them. Bank customers should be familiar with such activities and the products that represent them.