The climate is ripe for acquisitions, as those custodians with strong balance sheets seek deals to increase their depth of services and tap into the investor perception that larger banks are financially more secure and offer the safest haven for their assets. There has been little shortage of deals on offer as smaller domestic or regional banking groups in Europe attempt to offload their non-core custody and fund administration businesses. Indeed, the spate of deals in Europe has raised the question whether the continent can continue to support the existing network of small middle and back-office firms.