The developing world has never looked more appealing to custodian banks. Between 2011 and 2014the 11 largest global custodians boosted their exposures to emerging and frontier markets by 20.9 percent on average, with the biggest jump in South America. Emerging economies help banks diversify revenue and capture growth opportunities. "Investors are looking to balance high risk and high return," says Pascal Roland, senior manager of securities market infrastructure at SWIFT, an interbank messaging system based in La Hulpe, Belgium. "Emerging markets offer both." Some global custodians have been active in emerging markets for more than a century, but during the past decade those countries have leveled the playing field for the big banks by making regulatory changes that aim to meet international standards.
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