Bank custody business refers to the intermediary business in which a bank, as a third party, represents the interests of the asset owner according to laws, regulations and custody contracts, handles fund settlement in the name of custody assets, conducts accounting and valuation of custody assets, supervises the investment operation of managers, and collects custody fees to ensure the interests of asset customers. There are many kinds of bank custody business, including securities investment fund custody, entrusted assets custody, social security fund custody, enterprise annuity custody, trust assets custody, rural social security fund custody, basic old-age insurance personal account fund custody, supplementary medical insurance fund custody, income and expenditure account custody, QFII (qualified foreign institutional investors) custody, valuables custody and so on. The custodian institution shall, in accordance with the service agreement signed with commercial banks, provide safe and efficient equity custody services for commercial banks, and submit the equity information of commercial banks to China Banking Regulatory Commission and its dispatched offices. China Banking Regulatory Commission and its dispatched offices shall supervise and manage the equity custody activities of commercial banks according to law.

Legal basis: Article 3 of the Measures for Equity Custody of Commercial Banks.

The term "equity custody" as mentioned in these Measures means that a commercial bank signs a service agreement with a custody institution, entrusting it to manage the register of shareholders of the commercial bank, record equity information and handle relevant equity management affairs on its behalf.