Overview of offshore banking units (June 2006)
PRESS RELEASE Release Date: August 9, 2006
Overview of offshore banking units (June 2006)
At the end of June 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$70.068 billion at the end of June 2006, an increase of US$5.298 billion or 8.18% compared to the same period of the previous year. This was mainly due to the increase of US$ 2.761 billion in deposit with financial institutions and US$2.630 billion in security investments. Domestic bank OBUs accounted for US$51.339 billion or 73% of these combined assets, and foreign bank OBUs accounted for US$18.729 billion or 27% of the total.
The turnover of foreign exchange trading by all OBUs in June 2006 was US$9.943 billion consisting of (1) spot transactions for US$6.929 billion, (2) foreign exchange swaps for US$ 2.277 billion, and (3) outright forwards for US$737 million.
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 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 52% of total assets including (1) due from related offices for 34%, (2) deposits overseas for 12%, (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 60%, followed by America for 26%, Europe for 11%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of June 2006 was US$19.155 billion, of which 93% was extended to overseas clients, including long-term loans for US$10.295 billion and short-term loans for US$7.488 billion. The remaining 7% was extended to local clients for US$1.372 billion.
The volume of export related banking business of all OBUs in June 2006 was US$15.927 billion including (1) export collection, export remittance, and accounts receivable factoring for US$14.324 billion, and (2) export negotiation for US$1.603 billion. The volume of import related banking business of all OBUs was US$14.661 billion.
The turnover of other derivative products trading by all OBUs in June 2006 was US$15.086 billion including (1) options for US$10.195 billion, (2) financial futures for US$4.464 billion, (3) foreign currency interest rate swaps for US$301 million, (4) margin account trading for US$95 million, (5) credit derivatives for US$16 million, and (6) commodity swaps for US$15 million.
Note: The next dissemination will be made at 16:20 p.m. on September 7, 2006.