Central Bank of China

PRESS RELEASE Release Date: July 26, 2001




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Overview of offshore banking units (June 2001)

At the end of June, 2001, there were 69 offshore banking units(OBUs)in operation. Of these, 38 belonged to domestic banks and 31 belonged to foreign banks. The combined assets of all OBUs amounted to US$53.223 billion at the end of June, 2001; increased by US$10.905 billion or 25.77%compared with the same month of the previous year. Domestic bank OBUs accounted for US$36.728 billion or 69%of these combined assets, and foreign bank OBUs accounted for US$16.495 billion or 31%of the total.

Based on the balance sheet analysis, the OBU's main sources of funds were due to related offices and deposits by financial institutions that accounted for 74%of total liabilities. Of these, due to related offices accounted for 63%of total liabilities, deposits by financial institutions situated locally for 6%, those by financial institutions located overseas for 2%and inter-OBU deposits for 3%. The other sources of funds included deposits by non-financial institutions accounting for 22%of total liabilities and other liabilities plus the equity of head office for 4%. In terms of the areas of origin, the main source of funds was Asia that accounted for 79%, followed by America with 15%, Europe with 5%and other areas with 1%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 58%of total assets, of which 30%was due from related offices, 24%was deposited overseas, 1%with other domestic financial institutions and 3%with domestic OBUs. The other uses of funds included loans accounting for 30%of total assets, security investments for 8%and other assets for 4%. Asia was the main destination of funds accounting for 61%, followed by America with 23%, Europe with 14%and other areas with 2%.

The loans outstanding of all OBUs at the end of June, 2001, amounted to US$16.181 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$8.863 billion, followed by short-term loans extended to oversea debtors with US$4.108 billion and loans extended to local debtors with US$3.210 billion. The export banking business volume of all OBUs in June was US$2.268 billion. Of this amount, export collection plus export remittance accounted for US$1.542 billion and export negotiation for US$0.726 billion.

The foreign exchange trading turnover of all OBUs in June was US$2.995 billion. Of this amount, spot transactions accounted for US$2.035 billion, followed by foreign exchange swaps with US$0.851 billion and outright forwards with US$0.109 billion.

The total trading turnover of the other new products of all OBUs in June was US$0.863 billion. Of this amount, options accounted for US$0.471 billion, followed by foreign currency forward rate agreements with US$0.135 billion, foreign currency interest rate swaps with US$0.127 billion, margin account tradings with US$0.113 billion, cross currency swaps(not involving NT dollars)with US$ 0.015 billion, and financial futures with US$ 0.002 billion.