What is ‘Safekeeping’
Safekeeping is the storage of assets or other items of value in a protected area.
Individuals may use self-directed methods of safekeeping or the services of a bank or brokerage firm. Financial institutions are custodians and are therefore legally responsible for the items in safekeeping.
Also known as “safekeep”.
Explaining ‘Safekeeping’
Individuals who place an asset in safekeeping are also issued a safekeeping receipt. These receipts indicate that the asset of the individual does not become an asset of the institution and that the asset may be returned to the individual upon request. A fee may be required for these services.
Further Reading
- Safe banking: Finance and democracy – www.jstor.org [PDF]
- Historical perspectives on financial development and economic growth – www.nber.org [PDF]
- The law and economics of hedge funds: Financial innovation and investor protection – heinonline.org [PDF]
- Inputs, outputs, and a theory of production and cost at depository financial institutions – onlinelibrary.wiley.com [PDF]
- Including estimates of the future in today's financial statements – meridian.allenpress.com [PDF]
