Overview of offshore banking units (September 2006)
PRESS RELEASE Release Date: November 9, 2006
Overview of offshore banking units (September 2006)
At the end of September 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$74.961 billion at the end of September 2006, an increase of US$10.967 billion or 17.14% compared to the same period of the previous year. Domestic bank OBUs accounted for US$54.361 billion or 73% of these combined assets, and foreign bank OBUs accounted for US$20.600 billion or 27% of the total.
The turnover of foreign exchange trading by all OBUs in September 2006 was US$8.330 billion consisting of (1) spot transactions for US$5.915 billion, (2) foreign exchange swaps for US$ 1.673 billion, and (3) outright forwards for US$742 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 50%, (2) deposits by financial institutions situated locally for 8%, (3) deposits by financial institutions located overseas for 2%, and (4) inter-OBU deposits for 2%. 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 70%, followed by America for 23%, Europe for 5%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 54% of total assets including (1) due from related offices for 34%, (2) deposits overseas for 14%, (3) deposits with other domestic financial institutions for 4 %, and (4) deposits with domestic OBUs for 2%. The other uses of funds included (1) loans for 26%, (2) security investments for 14%, and (3) other assets for 6%. Asia was the main destination for funds, accounting for 60%, followed by America for 27%, Europe for 11%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of September 2006 was US$19.872 billion, of which 93% was extended to overseas clients, including long-term loans for US$10.783 billion and short-term loans for US$7.784 billion. The remaining 7% was extended to local clients for US$1.305 billion.
The volume of export related banking business of all OBUs in September 2006 was US$16.420 billion including (1) export collection, export remittance, and accounts receivable factoring for US$14.912 billion, and (2) export negotiation for US$1.508 billion. The volume of import related banking business of all OBUs was US$14.958 billion.
The turnover of other derivative products trading by all OBUs in September 2006 was US$14.101 billion including (1) options for US$10.170 billion, (2) financial futures for US$3.603 billion, (3) foreign currency interest rate swaps for US$208million, (4) margin account trading for US$73 million, (5) credit derivatives for US$45 million, (6) equity swaps US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on December 7, 2006.