Comment on the following: The depository system functions very much like the banking system.

The depository system functions very much like the banking system. A bank holds funds in accounts whereas a Depository holds securities in account for its clients. A bank transfers fund between accounts whereas a Depository transfers securities between accounts. In both systems, the transfer of funds or securities happens without the actual handling of funds or securities. Both the Banks and the depository are accountable for the safe keeping of funds and securities respectively.