PRESS RELEASE Release Date: May 6, 2003




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Overview of offshore banking units (March 2003)

At the end of March, 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$54.101 billion at the end of March, 2003; increased by US$1.557 billion or 2.96%compared with the same month of the previous year. Domestic bank OBUs accounted for US$38.181 billion or 71%of these combined assets, and foreign bank OBUs accounted for US$15.920 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 47%of total liabilities, deposits by financial institutions situated locally for 14%, those by financial institutions located overseas for 3%and inter-OBU deposits for 3%. 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 71%, followed by America with 21%, Europe with 6%and other areas with 2%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 56%of total assets, of which 35%was due from related offices, 14%was deposited overseas, 4%with other domestic financial institutions and 3%with domestic OBUs. The other uses of funds included loans accounting for 28%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 March, 2003, amounted to US$15.057 billion, of which 81%was extended to oversea debtors, and 19%to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$7.785 billion, followed by short-term loans extended to oversea debtors with US$4.352 billion and loans extended to local debtors with US$2.920 billion. The export banking business volume of all OBUs in March was US$5.218 billion. Of this amount, export collection plus export remittance accounted for US$4.018 billion and export negotiation for US$1.20 billion.

The foreign exchange trading turnover of all OBUs in March was US$4.172 billion. Of this amount, spot transactions accounted for US$3.103 billion, followed by foreign exchange swaps with US$0.852 billion and outright forwards with US$0.217 billion.

The total trading turnover of the other new products of all OBUs in March was US$5.346 billion. Of this amount, options accounted for US$2.345 billion, followed by financial futures with US$2.263 billion, foreign currency interest rate swaps with US$0.410 billion, foreign currency forward rate agreements with US$0.170 billion, and margin account tradings with US$0.158 billion.