Overview of offshore banking units (February 2005)
At the end of February 2005, there were 70 offshore banking units (OBUs) including 42 domestic banks and 28 foreign banks. The combined assets of all OBUs amounted to US$68.088 billion at the end of February 2005, an increase of US$3.189 billion or 4.91% compared to the same period of the previous year. Domestic bank OBUs accounted for US$47.260 billion or 69% of these combined assets, and foreign bank OBUs accounted for US$20.828 billion or 31% 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 accounted for 61% of total liabilities including (1) due to related offices for 46%, (2) deposits by financial institutions situated locally for 8%, (3) deposits by financial institutions located overseas for 4%, and (4) inter-OBU deposits for 3%. The other sources of funds included deposits by non-financial institutions, accounting for 28% of total liabilities, and other liabilities plus the equity of head office for 11%. In terms of the area of origin, Asia accounted for 64%, followed by America for 20%, Europe for 11%, and other areas for 5%.
The main uses for funds were due from related offices and deposits with financial institutions which accounted for 53% of total assets consisting of (1) due from related offices for 39%, (2) deposits overseas for 8%, (3) deposits with domestic OBUs for 3%, and (4) deposits with other domestic financial institutions for 3%. The other uses of funds included (1) loans for 26%, (2) security investments for 10%, and (3) other assets for 11%. Asia was the main destination for funds, accounting for 68%, followed by America for 20%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of February 2005 was US$17.755 billion, of which 85% was extended to overseas clients including long-term loans for US$8.717 billion, and short- term loans for US$6.451 billion, and 15% was extended to local clients for US$2.587 billion.
The volume of export related banking business of all OBUs in February 2005 was US$7.413 billion including (1) export collection plus export remittance accounted for US$6.154 billion, and (2) export negotiation for US$1.259 billion. The volume of import related banking business of all OBUs was US$5.394 billion.
The turnover of foreign exchange trading by all OBUs in February 2005 was US$9.983 billion consisting of (1) spot transactions for US$7.399 billion, (2) outright forwards for US$1.193 billion, and (3) foreign exchange swaps for US$ 1.391 billion.
The turnover of other derivative products trading by all OBUs in February 2005 was US$4.281 billion including (1) options accounted for US$2.583 billion, (2) financial futures for US$1.421 billion, (3) foreign currency interest rate swaps for US$0.250 billion, (4) margin account trading for US$0.024 billion, and (5) credit derivatives for US$0.003 billion.
Note: The next dissemination will be made at 16:20 p.m. on May 9, 2005.