PRESS RELEASE Release Date: November 3, 2001




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Overview of offshore banking units (September 2001)

At the end of September, 2001, there were 68 offshore banking units(OBUs)in operation. Of these, 38 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs amounted to US$55.722 billion at the end of September, 2001; increased by US$13.046 billion or 30.57%compared with the same month of the previous year. Domestic bank OBUs accounted for US$38.310 billion or 69%of these combined assets, and foreign bank OBUs accounted for US$17.412 billion or 31%of the total.

Based on the balance sheet analysis, the OBU's main sources of funds were due to related offices and deposits by financial institutions that accounted for 74%of total liabilities. Of these, due to related offices accounted for 60%of total liabilities, deposits by financial institutions situated locally for 8%, those by financial institutions located overseas for 3%and inter-OBU deposits for 3%. The other sources of funds included deposits by non-financial institutions accounting for 22%of total liabilities and other liabilities plus the equity of head office for 4%. In terms of the areas of origin, the main source of funds was Asia that accounted for 79%, followed by America with 16%, Europe with 4%and other areas with 1%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 60%of total assets, of which 31%was due from related offices, 24%was deposited overseas, 2%with other domestic financial institutions and 3%with domestic OBUs. The other uses of funds included loans accounting for 29%of total assets, security investments for 7%and other assets for 4%. Asia was the main destination of funds accounting for 64%, followed by America with 22%, Europe with 12%and other areas with 2%.

The loans outstanding of all OBUs at the end of September, 2001, amounted to US$15.912 billion, of which 80%was extended to oversea debtors, and 20%to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$8.773 billion, followed by short-term loans extended to oversea debtors with US$3.945 billion and loans extended to local debtors with US$3.194 billion. The export banking business volume of all OBUs in September was US$2.163 billion. Of this amount, export collection plus export remittance accounted for US$1.503 billion and export negotiation for US$0.660 billion.

The foreign exchange trading turnover of all OBUs in September was US$2.214 billion. Of this amount, spot transactions accounted for US$1.612 billion, followed by foreign exchange swaps with US$0.520 billion and outright forwards with US$0.082 billion.

The total trading turnover of the other new products of all OBUs in September was US$1.095 billion. Of this amount, options accounted for US$0.783 billion, followed by margin account tradings with US$0.156 billion, foreign currency interest rate swaps with US$0.081 billion, foreign currency forward rate agreements with US$0.035 billion, Commodity Price Swaps with US$0.035 billion, and cross currency swaps(not involving NT dollars)with US$0.005 billion.