Overview of offshore banking units (November 2004)
PRESS RELEASE Release Date: January 7, 2005
Overview of offshore banking units (November 2004)
At the end of November 2004, there were 70 offshore banking units (OBUs) in operation. Of these, 42 belonged to domestic banks and 28 belonged to foreign banks. The combined assets of all OBUs amounted to US$69.593 billion at the end of November 2004, increasing by US$9.066 billion or 14.98% compared with the same month of the previous year. Domestic bank OBUs accounted for US$47.935 billion or 69% of these combined assets, and foreign bank OBUs accounted for US$21.658 billion or 31% 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 together accounted for 62% of total liabilities. Of these, due to related offices accounted for 47% of total liabilities, deposits by financial institutions situated locally for 7%, 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 27% of total liabilities, and other liabilities plus the equity of head office for 11%. In terms of the area of origin, Asia accounted for 67%, followed by America with 21%, Europe with 8%, and other areas with 4%.
The main uses of funds were due from related offices and deposits with financial institutions which together accounted for 53% of total assets. A further breakdown shows 38% was due from related offices, 9% was deposited overseas, 4% with domestic OBUs and 2% with other domestic financial institutions. The other uses of funds included loans, accounting for 26% of total assets, security investments for 10%, and other assets for 11%. Asia was the main destination for funds, accounting for 68%, followed by America with 19%, Europe with 10%, and other areas with 3%.
The total value of all outstanding loans made by OBUs at the end of November 2004, amounted to US$18.270 billion, of which 85% was extended to oversea debtors, and 15% to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$8.642 billion, followed by short-term loans extended to oversea debtors with US$6.861 billion, and loans extended to local debtors with US$2.767 billion.
The volume of export related banking business of all OBUs in November was US$8.096 billion. Of this amount, export collection plus export remittance accounted for US$6.559 billion, and export negotiation for US$1.537 billion. The volume of import related banking business of all OBUs was US$6.948 billion.
The turnover of foreign exchange trading by all OBUs in November was US$12.795 billion. Of this amount, spot transactions accounted for US$7.554 billion, followed by outright forwards with US$3.083 billion, and foreign exchange swaps with US$2.158 billion.
The turnover of trading other derivative products by all OBUs in November was US$4.886 billion. Of this amount, options accounted for US$3.628 billion, followed by financial futures with US$0.940 billion, foreign currency interest rate swaps with US$0.275 billion, foreign currency forward rate agreements with US$0.020 billion, credit derivatives with US$0.013 billion and margin account tradings with US$0.010 billion.
Note: The next dissemination will be made at 16:20 p.m. on February 16, 2005.