Overview of offshore banking units (July 2005)
PRESS RELEASE Release Date: September 8, 2005
Overview of offshore banking units (July 2005)
At the end of July 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$63.515 billion at the end of July 2005, an decrease of US$3.288 billion or 4.92% compared to the same period of the previous year. Domestic bank OBUs accounted for US$43.775 billion or 69% of these combined assets, and foreign bank OBUs accounted for US$19.740 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 accounted for 64% of total liabilities including (1) due to related offices for 48%, (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 6%. In terms of the area of origin, Asia accounted for 65%, followed by America for 21%, Europe for 9%, and other areas for 5%.
The main uses for funds were due from related offices and deposits with financial institutions which accounted for 53% of total assets consisting of (1) due from related offices for 40%, (2) deposits overseas for 7%, (3) deposits with domestic OBUs for 3%, and (4) deposits with other domestic financial institutions for 3%. The other uses of funds included (1) loans for 29%, (2) security investments for 12%, and (3) other assets for 6%. Asia was the main destination for funds, accounting for 66%, followed by America for 22%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of July 2005 was US$18.210 billion, of which 87% was extended to overseas clients including long-term loans for US$8.798 billion, and short-term loans for US$6.955 billion, and 13% was extended to local clients for US$2.457 billion.
The volume of export related banking business of all OBUs in July 2005 was US$7.743 billion including (1) export collection, export remittance, and accounts receivable factoring for US$6.397 billion, and (2) export negotiation for US$1.346 billion. The volume of import related banking business of all OBUs was US$8.642 billion.
The turnover of foreign exchange trading by all OBUs in July 2005 was US$15.186 billion consisting of (1) spot transactions for US$11.891 billion, (2) outright forwards for US$1.782 billion, and (3) foreign exchange swaps for US$ 1.513 billion.
The turnover of other derivative products trading by all OBUs in July 2005 was US$6.957 billion including (1) options for US$3.978 billion, (2) financial futures for US$2.403 billion, (3) foreign currency interest rate swaps for 0.487 billion, (4) margin account trading for US$0.089 billion.
Note: The next dissemination will be made at 16:20 p.m. on October 7, 2005.