Overview of offshore banking units (March 2006)
PRESS RELEASE Release Date: May 8, 2006
Overview of offshore banking units (March 2006)
At the end of March 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$68.394 billion at the end of March 2006, an increase of US$33 million or 0.05% compared to the same period of the previous year. Domestic bank OBUs accounted for US$50.359 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$18.035 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in March 2006 was US$12.920 billion consisting of (1) spot transactions for US$7.933 billion, (2) foreign exchange swaps for US$ 3.145 billion, and (3) outright forwards for US$1.842 billion.
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 49%, (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 8%. 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 52% of total assets including (1) due from related offices for 33%, (2) deposits overseas for 13%, (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 27%, (2) security investments for 14%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 61%, followed by America for 25%, Europe for 11%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of March 2006 was US$18.691 billion, of which 92% was extended to overseas clients, including long-term loans for US$10.050 billion and short-term loans for US$7.138 billion. The remaining 8% was extended to local clients for US$1.503 billion.
The volume of export related banking business of all OBUs in March 2006 was US$14.622 billion including (1) export collection, export remittance, and accounts receivable factoring for US$13.231 billion, and (2) export negotiation for US$1.391 billion. The volume of import related banking business of all OBUs was US$13.689 billion.
The turnover of other derivative products trading by all OBUs in March 2006 was US$12.826 billion including (1) options for US$8.891 billion, (2) financial futures for US$3.565 billion, (3) foreign currency interest rate swaps for US$192 million, (4) margin account trading for US$163 million, (5) credit derivatives for US$15 million.
Note: The next dissemination will be made at 16:20 p.m. on June 7, 2006.