Central Bank of China

PRESS RELEASE Release Date: July 7, 2003




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Overview of offshore banking units (May 2003)

At the end of May, 2003, there were 71 offshore banking units(OBUs)in operation. Of these, 42 belonged to domestic banks and 29 belonged to foreign banks. The combined assets of all OBUs amounted to US$54.002 billion at the end of May, 2003; increased by US$3.104 billion or 6.10%compared with the same month of the previous year. Domestic bank OBUs accounted for US$37.450 billion or 69%of these combined assets, and foreign bank OBUs accounted for US$16.552 billion or 31%of the total.

Based on the balance sheet analysis, the OBUs' main sources of funds were due to related offices and deposits by financial institutions that accounted for 67%of total liabilities. Of these, due to related offices accounted for 45%of total liabilities, deposits by financial institutions situated locally for 14%, those by financial institutions located overseas for 5%and inter-OBU deposits for 3%. The other sources of funds included deposits by non-financial institutions accounting for 28%of total liabilities and other liabilities plus the equity of head office for 5%. In terms of the areas of origin, the main source of funds was Asia that accounted for 70%, followed by America with 20%, Europe with 7%and other areas with 3%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 55%of total assets, of which 35%was due from related offices, 13%was deposited overseas, 4%with other domestic financial institutions and 3%with domestic OBUs. The other uses of funds included loans accounting for 28%of total assets, security investments for 13%and other assets for 4%. Asia was the main destination of funds accounting for 66%, followed by America with 22%, Europe with 10%and other areas with 2%.

The loans outstanding of all OBUs at the end of May, 2003, amounted to US$15.225 billion, of which 81%was extended to oversea debtors, and 19%to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$7.533 billion, followed by short-term loans extended to oversea debtors with US$4.745 billion and loans extended to local debtors with US$2.947 billion. The export banking business volume of all OBUs in May was US$5.039 billion. Of this amount, export collection plus export remittance accounted for US$3.858 billion and export negotiation for US$1.181 billion.

The foreign exchange trading turnover of all OBUs in May was US$4.290 billion. Of this amount, spot transactions accounted for US$3.048 billion, followed by foreign exchange swaps with US$0.831 billion and outright forwards with US$0.411 billion.

The total trading turnover of the other new products of all OBUs in May was US$5.391 billion. Of this amount, options accounted for US$3.590 billion, followed by financial futures with US$0.983 billion, foreign currency interest rate swaps with US$0.653 billion, margin account tradings with US$0.117 billion , foreign currency forward rate agreements with US$0.040 billion and cross currency swaps (not involving NT dollar) with US$0.008 billion.