Overview of offshore banking units (May 2006)
PRESS RELEASE Release Date: July 7, 2006
Overview of offshore banking units (May 2006)
At the end of May 2006, there were 67 offshore banking units (OBUs) including 40 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$71.206 billion at the end of May 2006, an increase of US$551 million or 0.78% compared to the same period of the previous year. Domestic bank OBUs accounted for US$52.153 billion or 73% of these combined assets, and foreign bank OBUs accounted for US$19.053 billion or 27% of the total.
The turnover of foreign exchange trading by all OBUs in May 2006 was US$10.131 billion consisting of (1) spot transactions for US$7.065 billion, (2) foreign exchange swaps for US$ 1.974 billion, and (3) outright forwards for US$1.092 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 62% of total liabilities including (1) due to related offices for 51%, (2) deposits by financial institutions situated locally for 5%, (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 30% 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 23%, Europe for 6%, 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 including (1) due from related offices for 34%, (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 26%, (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 24%, Europe for 12%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of May 2006 was US$18.879 billion, of which 93% was extended to overseas clients, including long-term loans for US$10.075 billion and short-term loans for US$7.422 billion. The remaining 7% was extended to local clients for US$1.382 billion.
The volume of export related banking business of all OBUs in May 2006 was US$12.936 billion including (1) export collection, export remittance, and accounts receivable factoring for US$11.754 billion, and (2) export negotiation for US$1.182 billion. The volume of import related banking business of all OBUs was US$12.582 billion.
The turnover of other derivative products trading by all OBUs in May 2006 was US$18.062 billion including (1) options for US$12.571 billion, (2) financial futures for US$5.140 billion, (3) foreign currency interest rate swaps for US$212 million, (4) margin account trading for US$126 million, (5) equity swaps for US$8 million, (6) credit derivatives for US$4 million, and (7) commodity forward contracts for US$1 million.
Note: The next dissemination will be made at 16:20 p.m. on August 9, 2006.