Overview of offshore banking units (October 2005)
PRESS RELEASE Release Date: December 7, 2005
Overview of offshore banking units (October 2005)
At the end of October 2005, there were 70 offshore banking units (OBUs) including 41 domestic banks and 29 foreign banks. The combined assets of all OBUs amounted to US$65.072 billion at the end of October 2005, a decrease of US$1.826 billion or 2.73﹪(mainly an US$2.092 billion decrease in other assets principally owing to changes in the method of financial reporting for transactions in US Dollar-Renminbi non-deliverable forwards or margin account trading). Domestic bank OBUs accounted for US$45.089 billion or 69% of these combined assets, and foreign bank OBUs accounted for US$19.983 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 48%, (2) deposits by financial institutions situated locally for 6%, (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 31% of total liabilities, and other liabilities plus the equity of head office for 8%. In terms of the area of origin, Asia accounted for 65%, followed by America for 23%, Europe for 7%, and other areas for 5%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 51% of total assets including (1) due from related offices for 37%, (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 29%, (2) security investments for 13%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 63%, followed by America for 24%, Europe for 10%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of October 2005 was US$18.918 billion, of which 88% was extended to overseas clients, including long-term loans for US$9.371 billion, and short-term loans for US$7.250 billion. 12% was extended to local clients for US$2.297 billion.
The volume of export related banking business of all OBUs in October 2005 was US$9.896 billion including (1) export collection, export remittance, and accounts receivable factoring for US$8.748 billion, and (2) export negotiation for US$1.148 billion. The volume of import related banking business of all OBUs was US$10.079 billion.
The turnover of foreign exchange trading by all OBUs in October 2005 was US$9.626 billion consisting of (1) spot transactions for US$6.420 billion, (2) foreign exchange swaps for US$ 2.103 billion, and (3) outright forwards for US$1.103 billion.
The turnover of other derivative products trading by all OBUs in October 2005 was US$10.760 billion including (1) options for US$6.124 billion, (2) financial futures for US$3.662 billion, (3) foreign currency interest rate swaps for US$900 million, (4) margin account trading for US$47 million, (5) credit derivatives for US$24 million, and (6) cross currency swaps ( not involving NT dollar) for US$3 million.
Note: The next dissemination will be made at 16:20 p.m. on January 9, 2006.