Overview of offshore banking units (December 2004)
PRESS RELEASE Release Date: February 16, 2005
Overview of offshore banking units (December 2004)
At the end of December 2004, there were 70 offshore banking units (OBUs) in operation. Of these, 42 belonged to domestic banks and 28 belonged to foreign banks. The combined assets of all OBUs amounted to US$69.219 billion at the end of December 2004, increasing by US$6.696 billion or 10.71% compared with the same month of the previous year. Domestic bank OBUs accounted for US$48.212 billion or 70% of these combined assets, and foreign bank OBUs accounted for US$21.007 billion or 30% 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 together accounted for 62% of total liabilities. Of these, due to related offices accounted for 47% of total liabilities, deposits by financial institutions situated locally for 7%, 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 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 64%, followed by America with 20%, Europe with 11%, and other areas with 5%.
The main uses of funds were due from related offices and deposits with financial institutions which together accounted for 53% of total assets. A further breakdown shows 37% was due from related offices, 10% was deposited overseas, 3% with domestic OBUs and 3% with other domestic financial institutions. The other uses of funds included loans, accounting for 26% of total assets, security investments for 10%, and other assets for 11%. Asia was the main destination for funds, accounting for 67%, followed by America with 20%, Europe with 10%, and other areas with 3%.
The total value of all outstanding loans made by OBUs at the end of December 2004, amounted to US$17.908 billion, of which 85% was extended to oversea debtors, and 15% to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$8.795 billion, followed by short-term loans extended to oversea debtors with US$6.396 billion, and loans extended to local debtors with US$2.717 billion.
The volume of export related banking business of all OBUs in December was US$9.082 billion. Of this amount, export collection plus export remittance accounted for US$7.468 billion, and export negotiation for US$1.614 billion. The volume of import related banking business of all OBUs was US$7.853 billion.
The turnover of foreign exchange trading by all OBUs in December was US$13.350 billion. Of this amount, spot transactions accounted for US$9.043 billion, followed by outright forwards with US$2.651 billion, and foreign exchange swaps with US$1.656 billion.
The turnover of trading other derivative products by all OBUs in December was US$5.938 billion. Of this amount, options accounted for US$4.380 billion, followed by financial futures with US$1.258 billion, foreign currency interest rate swaps with US$0.270 billion, margin account tradings with US$0.020 billion and credit derivatives with US$0.010 billion.
Note: The next dissemination will be made at 16:20 p.m. on March 16, 2005.