Overview of offshore banking units (March 2005)
At the end of March 2005, there were 69 offshore banking units (OBUs) including 41 domestic banks and 28 foreign banks. The combined assets of all OBUs amounted to US$68.361 billion at the end of March 2005, an increase of US$1.877 billion or 2.82% compared to the same period of the previous year. Domestic bank OBUs accounted for US$46.694 billion or 68% of these combined assets, and foreign bank OBUs accounted for US$21.667 billion or 32% of the total.
Based on balance sheet analysis, the OBUs main sources of funds were due to related offices and deposits by financial institutions which accounted for 62% of total liabilities including (1) due to related offices for 47%, (2) deposits by financial institutions situated locally for 6%, (3) deposits by financial institutions located overseas for 5%, and (4) inter-OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions, accounting for 27% of total liabilities, and other liabilities plus the equity of head office for 11%. In terms of the area of origin, Asia accounted for 63%, followed by America for 20%, Europe for 12%, and other areas for 5%.
The main uses for funds were due from related offices and deposits with financial institutions which accounted for 53% of total assets consisting of (1) due from related offices for 39%, (2) deposits overseas for 7%, (3) deposits with domestic OBUs for 4%, and (4) deposits with other domestic financial institutions for 3%. The other uses of funds included (1) loans for 26%, (2) security investments for 10%, and (3) other assets for 11%. Asia was the main destination for funds, accounting for 67%, followed by America for 20%, Europe for 10%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of March 2005 was US$17.773 billion, of which 86% was extended to overseas clients including long-term loans for US$8.563 billion, and short- term loans for US$6.732 billion, and 14% was extended to local clients for US$2.478 billion.
The volume of export related banking business of all OBUs in March 2005 was US$8.831 billion including (1) export collection plus export remittance accounted for US$7.092 billion, and (2) export negotiation for US$1.739 billion. The volume of import related banking business of all OBUs was US$7.602 billion.
The turnover of foreign exchange trading by all OBUs in March 2005 was US$10.194 billion consisting of (1) spot transactions for US$7.392 billion, (2) foreign exchange swaps for US$ 1.843 billion, and (3) outright forwards for US$0.959 billion.
The turnover of other derivative products trading by all OBUs in March 2005 was US$8.465 billion including (1) options accounted for US$5.817 billion, (2) financial futures for US$2.050 billion, (3) foreign currency interest rate swaps for US$0.408 billion, (4) foreign currency forward rate agreements for US$0.150 billion,(5) margin account trading for US$0.036 billion, and (6) credit derivatives for US$0.004 billion.
Note: The next dissemination will be made at 16:20 p.m. on June 7, 2005.