Overview of Offshore Banking Units (July 2004)
Central Bank of China
PRESS RELEASE Release Date: September 7, 2004
Overview of offshore banking units (July 2004)
At the end of July, 2004, there were 70 offshore banking units (OBUs) in
operation. Of these, 41 belonged to domestic banks and 29 belonged to foreign
banks. The combined assets of all OBUs amounted to US$66.803 billion at the end
of July, 2004, increasing by US$11.190 billion or 20.12% compared with the same
month of the previous year. Domestic bank OBUs accounted for US$44.681 billion
or 67% of these combined assets, and foreign bank OBUs accounted for US$22.122
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 64% of total liabilities. Of these, due to related offices accounted for 46%
of total liabilities, deposits by financial institutions situated locally for
8%, those by financial institutions located overseas for 7%, 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 10%. In terms of the area of origin, Asia
accounted for 63%, followed by America with 19%, Europe with 14%, and other
areas with 4%.
The main uses of funds were due from related offices and deposits with financial
institutions which together accounted for 52% of total assets. A further
breakdown shows 42% was due from related offices, 5% was deposited overseas, 3%
with domestic OBUs and 2% with other domestic financial institutions. The other
uses of funds included loans, accounting for 27% of total assets, security
investments for 11%, and other assets for 10%. 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 July, 2004,
amounted to US$18.178 billion, of which 83% was extended to oversea debtors, and
17% to local debtors. Of this amount, long-term loans extended to oversea
debtors accounted for US$8.377 billion, followed by short-term loans extended to
oversea debtors with US$6.766 billion, and loans extended to local debtors with
US$3.035 billion.
The volume of export related banking business of all OBUs in July was US$7.217
billion. Of this amount, export collection plus export remittance accounted for
US$5.607 billion, and export negotiation for US$1.610 billion. The volume of
import related banking business of all OBUs was US$5.077 billion.
The turnover of foreign exchange trading by all OBUs in July was US$8.938
billion. Of this amount, spot transactions accounted for US$5.820 billion,
followed by outright forwards with US$1.713 billion, and foreign exchange swaps
with US$1.405 billion.
The turnover of trading other derivative products by all OBUs in July was
US$5.288 billion. Of this amount, options accounted for US$2.960 billion,
followed by financial futures with US$1.876 billion, foreign currency interest
rate swaps with US$0.365 billion, foreign currency forward rate agreements with
US$0.050 billion, margin account tradings with US$0.037 billion.
Note: The next dissemination will be made at 16:20 p.m. on October 7, 2004.