PRESS RELEASE Release Date: August 30, 2001




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Overview of offshore banking units (July 2001)

At the end of July, 2001, there were 69 offshore banking units(OBUs)in operation. Of these, 38 belonged to domestic banks and 31 belonged to foreign banks. The combined assets of all OBUs amounted to US$54.888 billion at the end of July, 2001; increased by US$13.317 billion or 32.03%compared with the same month of the previous year. Domestic bank OBUs accounted for US$38.446 billion or 70%of these combined assets, and foreign bank OBUs accounted for US$16.442 billion or 30%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 75%of total liabilities. Of these, due to related offices accounted for 61%of total liabilities, deposits by financial institutions situated locally for 8%, those by financial institutions located overseas for 2%and inter-OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions accounting for 21%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 79%, followed by America with 15%, Europe with 5%and other areas with 1%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 60%of total assets, of which 29%was due from related offices, 26%was deposited overseas, 1%with other domestic financial institutions and 4%with domestic OBUs. The other uses of funds included loans accounting for 29%of total assets, security investments for 8%and other assets for 3%. Asia was the main destination of funds accounting for 62%, followed by America with 23%, Europe with 13%and other areas with 2%.

The loans outstanding of all OBUs at the end of July, 2001, amounted to US$16.121 billion, of which 80%was extended to oversea debtors, and 20%to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$8.895 billion, followed by short-term loans extended to oversea debtors with US$4.034 billion and loans extended to local debtors with US$3.192 billion. The export banking business volume of all OBUs in July was US$2.629 billion. Of this amount, export collection plus export remittance accounted for US$1.718 billion and export negotiation for US$0.911 billion.

The foreign exchange trading turnover of all OBUs in July was US$2.575 billion. Of this amount, spot transactions accounted for US$1.790 billion, followed by foreign exchange swaps with US$0.685 billion and outright forwards with US$0.1 billion.

The total trading turnover of the other new products of all OBUs in July was US$1.195 billion. Of this amount, options accounted for US$0.789 billion, followed by foreign currency interest rate swaps with US$0.232 billion, margin account tradings with US$0.141 billion, foreign currency forward rate agreements with US$0.022 billion, financial futures with US$ 0.006 billion, and cross currency swaps(not involving NT dollars)with US$ 0.005 billion.