Central Bank of China

PRESS RELEASE Release Date: March 13, 2003




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Overview of offshore banking units (January 2003)

At the end of January, 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$50.752 billion at the end of January, 2003; decreased by US$0.482 billion or 0.94%compared with the same month of the previous year. Domestic bank OBUs accounted for US$36.265 billion or 71%of these combined assets, and foreign bank OBUs accounted for US$14.487 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 32%was due from related offices, 16%was deposited overseas, 4%with domestic OBUs and 3%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 January, 2003, amounted to US$14.938 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$7.661 billion, followed by short-term loans extended to oversea debtors with US$4.358 billion and loans extended to local debtors with US$2.919 billion. The export banking business volume of all OBUs in January was US$4.872 billion. Of this amount, export collection plus export remittance accounted for US$3.609 billion and export negotiation for US$1.263 billion.

The foreign exchange trading turnover of all OBUs in January was US$4.521 billion. Of this amount, spot transactions accounted for US$3.357 billion, followed by foreign exchange swaps with US$0.914 billion and outright forwards with US$0.25 billion.

The total trading turnover of the other new products of all OBUs in January was US$3.668 billion. Of this amount, options accounted for US$2.742 billion, followed by financial futures with US$0.47 billion, foreign currency interest rate swaps with US$0.252 billion,foreign currency forward rate agreements with US$0.125 billion, margin account tradings with US$0.074 billion and cross currency swaps (not involving NT dollar) with US$0.005 billion.