PRESS RELEASE Jun 2,2001

Overview of offshore banking units in April 2001

At the end of April,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$ 49.872 billion at the end of April, 2001; increased by US$9.146 billion or 22.46%compared with the same month of the previous year. Domestic bank OBUs accounted for US$34.245 billion or 69%of these combined assets, and foreign bank OBUs accounted for US$15.627 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 73%of total liabilities. Of these, due to related offices accounted for 58%of total liabilities, deposits by financial institutions situated locally for 8%, those by financial institutions located overseas for 3%and inter- OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions accounting for 23%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 56% of total assets, of which 29%was due from related offices, 21%was deposited overseas, 2%with other domestic financial institutions and 4%with domestic OBUs. The other uses of funds included loans accounting for 32%of total assets, security investments for 8%and other assets for 4%. Asia was the main destination of funds accounting for 63%, followed by America with 25%, Europe with10%and other areas with 2%.

The loans outstanding of all OBUs at the end of April,2001, amounted to US$16.097 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$9.013 billion, followed by short-term loans extended to oversea debtors with US$3.878 billion and loans extended to local debtors with US$3.206 billion. The export banking business volume of all OBUs in April was US$2.284 billion. Of this amount, export collection plus export remittance accounted for US$1.556 billion, and export negotiation for US$0.728 billion.

The foreign exchange trading turnover of all OBUs in April was US$2.973 billion. Of this amount, spot transactions accounted for US$ 2.322 billion, followed by foreign exchange swaps with US$0.570 billion and outright forwards with US$0.081 billion.

The total trading turnover of the other new products of all OBUs in April was US$1.292 billion. Of this amount, options accounted for US$ 0.744 billion, followed by foreign currency interest rate swaps with US$0.335 billion, margin account tradings with US$ 0.142 billion, foreign currency forward rate agreements with US$0.045 billion, cross currency swaps(not involving NT dollars) with US$0.018 billion and financial futures with US$ 0.008 billion.