Overview of offshore banking units (August 2005)

At the end of August 2005, there were 70 offshore banking units (OBUs) including 41 domestic banks and 29 foreign banks. The combined assets of all OBUs amounted to US$63.752 billion at the end of August 2005, an decrease of US$3.489 billion(mainly an US$3.196 billion decrease in due to related offices, driven by some banks no longer financing through OBU upon maturity, and an US$1.949 billion decrease in other assets mainly owing to changes in method of financial reporting for transactions in US Dollar-Renminbi non-deliverable forwards or margin account trading) Domestic bank OBUs accounted for US$44.335 billion or 70% of these combined assets, and foreign bank OBUs accounted for US$19.417 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 accounted for 63% of total liabilities including (1) due to related offices for 47%, (2) deposits by financial institutions situated locally for 8%, (3) deposits by financial institutions located overseas for 5%, 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 7%. In terms of the area of origin, Asia accounted for 66%, followed by America for 22%, Europe for 7%, and other areas for 5%.
The main uses for funds were due from related offices and deposits with financial institutions which accounted for 52% of total assets consisting of (1) due from related offices for 38%, (2) deposits overseas for 7%, (3) deposits with domestic OBUs for 3%, and (4) deposits with other domestic financial institutions for 4%. The other uses of funds included (1) loans for 29%, (2) security investments for 12%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 62%, followed by America for 26%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of August 2005 was US$18.635 billion, of which 87% was extended to overseas clients including long-term loans for US$9.126 billion, and short-term loans for US$7.170 billion, and 13% was extended to local clients for US$2.339 billion.
The volume of export related banking business of all OBUs in August 2005 was US$9.060 billion including (1) export collection, export remittance, and accounts receivable factoring for US$7.578 billion, and (2) export negotiation for US$1.482 billion. The volume of import related banking business of all OBUs was US$9.291 billion.
The turnover of foreign exchange trading by all OBUs in August 2005 was US$14.413 billion consisting of (1) spot transactions for US$11.517 billion, (2) foreign exchange swaps for US$ 1.735 billion, and (3) outright forwards for US$1.161 billion.
The turnover of other derivative products trading by all OBUs in August 2005 was US$ 7.742 billion including (1) options for US$4.418 billion, (2) financial futures for US$2.628 billion, (3) foreign currency interest rate swaps for 0.501 billion, (4) margin account trading for US$0.173 billion, (5) credit derivatives for US$0.022 billion.

Note: The next dissemination will be made at 16:20 p.m. on November 8, 2005