Central Bank of China

PRESS RELEASE Release Date: January 7, 2004




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Overview of offshore banking units (November 2003)

At the end of November, 2003, there were 71 offshore banking units(OBUs)in operation. Of these, 42 belonged to domestic banks and 29 belonged to foreign banks. The combined assets of all OBUs amounted to US$62.206 billion at the end of November, 2003; increased by US$12.645 billion or 25.51%compared with the same month of the previous year. Domestic bank OBUs accounted for US$41.449 billion or 67%of these combined assets, and foreign bank OBUs accounted for US$20.757 billion or 33%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 68%of total liabilities. Of these, due to related offices accounted for 47%of total liabilities, deposits by financial institutions situated locally for 13%, those by financial institutions located overseas for 5%, and inter-OBU deposits for 3%. 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 6%. In terms of the area of origin, Asia accounted for 70%, followed by America with 19%, Europe with 8%, and other areas with 3%.

The main uses of funds were due from related offices and deposits with financial institutions which together accounted for 58%of total assets. A further breakdown shows 41%was due from related offices, 11%was deposited overseas, 3%with other domestic financial institutions and 3%with domestic OBUs. The other uses of funds included loans, accounting for 25%of total assets, security investments for 12%, and other assets for 5%. Asia was the main destination for funds, accounting for 68%, followed by America with 19%, Europe with 11%, and other areas with 2%.

The total value of all outstanding loans made by OBUs at the end of November, 2003, amounted to US$15.366 billion, of which 81%was extended to oversea debtors, and 19%to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$7.500 billion, followed by short-term loans extended to oversea debtors with US$4.891 billion, and loans extended to local debtors with US$2.975 billion.

The volume of export related banking business of all OBUs in November was US$5.617 billion. Of this amount, export collection plus export remittance accounted for US$4.522 billion, and export negotiation for US$1.095 billion. The volume of import related banking business of all OBUs was US$4.489 billion.

The turnover of foreign exchange trading by all OBUs in November was US$4.689 billion. Of this amount, spot transactions accounted for US$3.437 billion, followed by foreign exchange swaps with US$0.888 billion, and outright forwards with US$0.364 billion.

The turnover of trading other derivative products by all OBUs in November was US$3.774 billion. Of this amount, options accounted for US$1.914 billion, followed by foreign currency interest rate swaps with US$1.040 billion, financial futures with US$0.809 billion, margin account tradings with US$0.007 billion and cross currency swaps (not involving NT dollar) with US$0.004 billion.