Overview of offshore banking units (January 2005)
PRESS RELEASE Release Date: March 16, 2005
Overview of offshore banking units (January 2005)
At the end of January 2005, there were 69 offshore banking units (OBUs) in operation. Of these, 41 belonged to domestic banks and 28 belonged to foreign banks. The combined assets of all OBUs amounted to US$70.148 billion at the end of January 2005, increasing by US$7.187 billion or 11.42% compared with the same month of the previous year. Domestic bank OBUs accounted for US$48.899 billion or 70% of these combined assets, and foreign bank OBUs accounted for US$21.249 billion or 30% 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 63% 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 5%, and inter-OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions, accounting for 26% of total liabilities, and other liabilities plus the equity of head office for 11%. In terms of the area of origin, Asia accounted for 65%, followed by America with 20%, Europe with 10%, and other areas with 5%.
The main uses of funds were due from related offices and deposits with financial institutions which together accounted for 54% of total assets. A further breakdown shows 39% was due from related offices, 8% was deposited overseas, 4% with domestic OBUs and 3% with other domestic financial institutions. The other uses of funds included loans, accounting for 26% of total assets, security investments for 9%, and other assets for 11%. Asia was the main destination for funds, accounting for 66%, followed by America with 21%, Europe with 10%, and other areas with 3%.
The total value of all outstanding loans made by OBUs at the end of January 2005, amounted to US$18.018 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$8.682 billion, followed by short-term loans extended to oversea debtors with US$6.703 billion, and loans extended to local debtors with US$2.633 billion.
The volume of export related banking business of all OBUs in January was US$8.601 billion. Of this amount, export collection plus export remittance accounted for US$6.943 billion, and export negotiation for US$1.658 billion. The volume of import related banking business of all OBUs was US$7.684 billion.
The turnover of foreign exchange trading by all OBUs in January was US$13.412 billion. Of this amount, spot transactions accounted for US$8.846 billion, followed by outright forwards with US$2.599 billion, and foreign exchange swaps with US$1.967 billion.
The turnover of trading other derivative products by all OBUs in January was US$5.258 billion. Of this amount, options accounted for US$3.123 billion, followed by financial futures with US$1.756 billion, foreign currency interest rate swaps with US$0.329 billion, margin account tradings with US$0.045 billion and credit derivatives with US$0.005 billion.
Note: The next dissemination will be made at 16:20 p.m. on April 8, 2005.