Central Bank of China

PRESS RELEASE Release Date: April 7, 2003




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Overview of offshore banking units (February 2003)

At the end of February, 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$51.595 billion at the end of February, 2003; increased by US$0.055 billion or 0.11%compared with the same month of the previous year. Domestic bank OBUs accounted for US$36.515 billion or 71%of these combined assets, and foreign bank OBUs accounted for US$15.080 billion or 29%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 46%of total liabilities, deposits by financial institutions situated locally for 13%, those by financial institutions located overseas for 4%and inter-OBU deposits for 4%. 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 72%, followed by America with 19%, Europe with 7%and other areas with 2%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 55%of total assets, of which 34%was due from related offices, 13%was deposited overseas, 4%with domestic OBUs and 4%with other domestic financial institutions. The other uses of funds included loans accounting for 29%of total assets, security investments for 12%and other assets for 4%. Asia was the main destination of funds accounting for 66%, followed by America with 23%, Europe with 9%and other areas with 2%.

The loans outstanding of all OBUs at the end of February, 2003, amounted to US$14.911 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$7.712 billion, followed by short-term loans extended to oversea debtors with US$4.235 billion and loans extended to local debtors with US$2.964 billion. The export banking business volume of all OBUs in February was US$3.714 billion. Of this amount, export collection plus export remittance accounted for US$2.788 billion and export negotiation for US$0.926 billion.

The foreign exchange trading turnover of all OBUs in February was US$3.414 billion. Of this amount, spot transactions accounted for US$2.568 billion, followed by foreign exchange swaps with US$0.705 billion and outright forwards with US$0.141 billion.

The total trading turnover of the other new products of all OBUs in February was US$3.446 billion. Of this amount, options accounted for US$2.360 billion, followed by financial futures with US$0.620 billion, foreign currency interest rate swaps with US$0.288 billion, margin account tradings with US$0.099 billion, foreign currency forward rate agreements with US$0.075 billion, and cross currency swaps (not involving NT dollar) with US$0.004 billion.