Overview of offshore banking units (November 2005)
PRESS RELEASE Release Date: January 9, 2006
Overview of offshore banking units (November 2005)
At the end of November 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$66.7 billion at the end of November 2005, a decrease of US$2.893 billion or 4.16﹪(This was mainly due to a US$2.992 billion decrease in other assets caused by changes in the accounting method of US Dollar-Renminbi non-deliverable forwards and margin trading). Domestic bank OBUs accounted for US$47.085 billion or 71% of these combined assets, and foreign bank OBUs accounted for US$19.615 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 61% of total liabilities, including (1) due to related offices for 47%, (2) deposits by financial institutions situated locally for 7%, (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 66%, followed by America for 22%, 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 52% of total assets, including (1) due from related offices for 36%, (2) deposits overseas for 11%, (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 7%. Asia was the main destination for funds, accounting for 62%, followed by America for 24%, Europe for 11%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of November 2005 was US$18.859 billion, of which 88% was extended to overseas clients, including long-term loans for US$9.449 billion and short-term loans for US$7.186 billion. The remaining 12% was extended to local clients for US$2.224 billion.
The volume of export related banking business of all OBUs in November 2005 was US$12.196 billion including (1) export collection, export remittance, and accounts receivable factoring for US$10.970 billion, and (2) export negotiation for US$1.226 billion. The volume of import related banking business of all OBUs was US$12.409 billion.
The turnover of foreign exchange trading by all OBUs in November 2005 was US$10.754 billion, consisting of (1) spot transactions for US$7.506 billion, (2) foreign exchange swaps for US$ 1.853 billion, and (3) outright forwards for US$1.395 billion.
The turnover of other derivative products trading by all OBUs in November 2005 was US$10.122 billion, including (1) options for US$6.460 billion, (2) financial futures for US$3.280 billion, (3) foreign currency interest rate swaps for US$305 million, (4) margin account trading for US$62 million, and (5) credit derivatives for US$15 million.
Note: The next dissemination will be made at 16:20 p.m. on February 13, 2006.