Overview of offshore banking units (January 2006)
PRESS RELEASE Release Date: March 10, 2006
Overview of offshore banking units (January 2006)
At the end of January 2006, there were 69 offshore banking units (OBUs) including 41 domestic banks and 28 foreign banks. The combined assets of all OBUs amounted to US$67.071 billion at the end of January 2006, a decrease of US$3.077 billion mainly made up of a US$3.489 billion decrease in due to related offices as some banks stopped financing through OBU upon maturity, a US$3.304 billion decrease in other assets mainly owing to changes in the method of financial reporting for transactions in US Dollar-Renminbi non-deliverable forwards or margin account trading, and a US$2.183 billion increase in security investments. Domestic bank OBUs accounted for US$47.672 billion or 71% of these combined assets, and foreign bank OBUs accounted for US$19.399 billion or 29% 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 62% of total liabilities including (1) due to related offices for 50%, (2) deposits by financial institutions situated locally for 6%, (3) deposits by financial institutions located overseas for 3%, 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 7%. In terms of the area of origin, Asia accounted for 66%, followed by America for 22%, Europe for 6%, and other areas for 6%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 53% of total assets including (1) due from related offices for 36%, (2) deposits overseas for 12%, (3) deposits with domestic OBUs for 3%, and (4) deposits with other domestic financial institutions for 2%. The other uses of funds included (1) loans for 28%, (2) security investments for 13%, and (3) other assets for 6%. Asia was the main destination for funds, accounting for 61%, followed by America for 24%, Europe for 12%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of January 2006 was US$18.817 billion, of which 91% was extended to overseas clients, including long-term loans for US$9.801 billion and short-term loans for US$7.273 billion. The remaining 9% was extended to local clients for US$1.743 billion.
The volume of export related banking business of all OBUs in January 2006 was US$12.246 billion including (1) export collection, export remittance, and accounts receivable factoring for US$10.893 billion, and (2) export negotiation for US$1.353 billion. The volume of import related banking business of all OBUs was US$11.693 billion.
The turnover of foreign exchange trading by all OBUs in January 2006 was US$10.321 billion consisting of (1) spot transactions for US$6.179 billion, (2) foreign exchange swaps for US$ 2.208 billion and (3) outright forwards for US$1.934 billion.
The turnover of other derivative products trading by all OBUs in January 2006 was US$8.760 billion including (1) options for US$6.584 billion, (2) financial futures for US$1.775 billion, (3) foreign currency interest rate swaps for US$310 million, (4) margin account trading for US$67 million, (5) equity swaps for US$19 million, and (6) cross currency swaps（not involving NT dollar） for US$ 5 million.
Note: The next dissemination will be made at 16:20 p.m. on April 7, 2006.