Central Bank of China

PRESS RELEASE Release Date: July 8, 2002




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Overview of offshore banking units (May 2002)

At the end of May, 2002, there were 68 offshore banking units(OBUs)in operation. Of these, 39 belonged to domestic banks and 29 belonged to foreign banks. The combined assets of all OBUs amounted to US$50.898 billion at the end of May, 2002; increased by US$0.09 billion or 0.18%compared with the same month of the previous year. Domestic bank OBUs accounted for US$37.343 billion or 73%of these combined assets, and foreign bank OBUs accounted for US$13.555 billion or 27%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 70%of total liabilities. Of these, due to related offices accounted for 53%of total liabilities, deposits by financial institutions situated locally for 10%, 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 26%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 75%, followed by America with 18%, Europe with 5%and other areas with 2%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 57%of total assets, of which 27%was due from related offices, 23%was deposited overseas, 3%with other domestic financial institutions and 4%with domestic OBUs. The other uses of funds included loans accounting for 30%of total assets, security investments for 10%and other assets for 3%. Asia was the main destination of funds accounting for 62%, followed by America with 24%, Europe with 11%and other areas with 3%.

The loans outstanding of all OBUs at the end of May, 2002, amounted to US$15.295 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$8.412 billion, followed by short-term loans extended to oversea debtors with US$4.017 billion and loans extended to local debtors with US$2.866 billion. The export banking business volume of all OBUs in May was US$2.816 billion. Of this amount, export collection plus export remittance accounted for US$1.971 billion and export negotiation for US$0.845 billion.

The foreign exchange trading turnover of all OBUs in May was US$2.783 billion. Of this amount, spot transactions accounted for US$2.155 billion, followed by foreign exchange swaps with US$0.547 billion and outright forwards with US$0.081 billion.

The total trading turnover of the other new products of all OBUs in May was US$2.431 billion. Of this amount, options accounted for US$2.069 billion, followed by foreign currency interest rate swaps with US$0.222 billion, cross currency swaps ( not involving NT dollars) with US$0.052 billion, margin account tradings with US$0.04 billion, financial futures with US$0.028 billion, and foreign currency forward rate agreements with US$0.02 billion.