Overview of offshore banking units (June 2005)
PRESS RELEASE Release Date: August 9, 2005
Overview of offshore banking units (June 2005)
At the end of June 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$64.770 billion at the end of June 2005, an decrease of US$6.750 billion or 9.44% compared to the same period of the previous year. Domestic bank OBUs accounted for US$44.982 billion or 69% of these combined assets, and foreign bank OBUs accounted for US$19.788 billion or 31% 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 48%, (2) deposits by financial institutions situated locally for 7%, (3) deposits by financial institutions located overseas for 4%, and (4) inter-OBU deposits for 3%. The other sources of funds included deposits by non-financial institutions, accounting for 30% of total liabilities, and other liabilities plus the equity of head office for 8%. In terms of the area of origin, Asia accounted for 65%, followed by America for 22%, Europe for 8%, and other areas for 5%.
The main uses for funds were due from related offices and deposits with financial institutions which accounted for 54% of total assets consisting of (1) due from related offices for 39%, (2) deposits overseas for 9%, (3) deposits with domestic OBUs for 3%, and (4) deposits with other domestic financial institutions for 3%. The other uses of funds included (1) loans for 28%, (2) security investments for 11%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 66%, followed by America for 22%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of June 2005 was US$18.157 billion, of which 86% was extended to overseas clients including long-term loans for US$8.655 billion, and short- term loans for US$6.965 billion, and 14% was extended to local clients for US$2.537 billion.
The volume of export related banking business of all OBUs in June 2005 was US$8.371 billion including (1) export collection, export remittance, and accounts receivable factoring accounted for US$6.970 billion, and (2) export negotiation for US$1.401 billion. The volume of import related banking business of all OBUs was US$8.742 billion.
The turnover of foreign exchange trading by all OBUs in June 2005 was US$10.974 billion consisting of (1) spot transactions for US$8.133 billion, (2) outright forwards for US$1.200 billion, and (3) foreign exchange swaps for US$ 1.641 billion.
The turnover of other derivative products trading by all OBUs in June 2005 was US$7.204 billion including (1) options accounted for US$3.694 billion, (2) financial futures for US$3.145 billion, (3) foreign currency interest rate swaps for 0.261 billion, (4) margin account trading for US$0.062 billion, (5) credit derivatives for US$0.042 billion.
Note: The next dissemination will be made at 16:20 p.m. on September 7, 2005.