Overview of offshore banking units (April 2005)
At the end of April 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$69.401 billion at the end of April 2005, an increase of US$0.529 billion or 0.77% compared to the same period of the previous year. Domestic bank OBUs accounted for US$48.051 billion or 69% of these combined assets, and foreign bank OBUs accounted for US$21.350 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 61% of total liabilities including (1) due to related offices for 45%, (2) deposits by financial institutions situated locally for 7%, (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 12%. 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 54% 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 4%. The other uses of funds included (1) loans for 25%, (2) security investments for 10%, and (3) other assets for 11%. Asia was the main destination for funds, accounting for 68%, followed by America for 20%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of April 2005 was US$17.628 billion, of which 86% was extended to overseas clients including long-term loans for US$8.522 billion, and short- term loans for US$6.601 billion, and 14% was extended to local clients for US$2.505 billion.
The volume of export related banking business of all OBUs in April 2005 was US$7.016 billion including (1) export collection plus export remittance accounted for US$5.531 billion, and (2) export negotiation for US$1.485 billion. The volume of import related banking business of all OBUs was US$6.565 billion.
The turnover of foreign exchange trading by all OBUs in April 2005 was US$9.587 billion consisting of (1) spot transactions for US$6.077 billion, (2) outright forwards for US$1.765 billion, and (3) foreign exchange swaps for US$ 1.745 billion.
The turnover of other derivative products trading by all OBUs in April 2005 was US$5.509 billion including (1) options accounted for US$3.463 billion, (2) financial futures for US$1.504 billion, (3) foreign currency interest rate swaps for US$0.463 billion, (4) margin account trading for US$0.036 billion, (5) foreign currency forward rate agreements for US$0.030 billion, and (6) credit derivatives for US$0.013 billion.
Note: The next dissemination will be made at 16:20 p.m. on July 7, 2005.