Overview of offshore banking units (October 2006)
PRESS RELEASE Release Date: December 7, 2006
Overview of offshore banking units (October 2006)
At the end of October 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$69.811 billion at the end of October 2006, an increase of US$4.739 billion or 7.28% compared to the same period of the previous year. Domestic bank OBUs accounted for US$51.587 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$18.224 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in October 2006 was US$7.249 billion consisting of (1) spot transactions for US$4.739 billion, (2) foreign exchange swaps for US$ 1.767 billion, and (3) outright forwards for US$743 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 59% of total liabilities including (1) due to related offices for 48%, (2) deposits by financial institutions situated locally for 6%, (3) inter-OBU deposits for 3%, and (4) deposits by financial institutions located overseas for 2%. The other sources of funds included deposits by non-financial institutions accounting for 34% of total liabilities, and other liabilities plus the equity of head office for 7%. In terms of the area of origin, Asia accounted for 68%, followed by America for 24%, Europe for 6%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 50% of total assets including (1) due from related offices for 32%, (2) deposits overseas for 12%, (3) deposits with domestic OBUs for 3%, (4) deposits with other domestic financial institutions for 3 %. The other uses of funds included (1) loans for 29%, (2) security investments for 15%, and (3) other assets for 6%. Asia was the main destination for funds, accounting for 59%, followed by America for 27%, Europe for 12%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of October 2006 was US$20.118 billion, of which 94% was extended to overseas clients, including long-term loans for US$11.001 billion and short-term loans for US$7.863 billion. The remaining 6% was extended to local clients for US$1.254 billion.
The volume of export related banking business of all OBUs in October 2006 was US$15.901 billion including (1) export collection, export remittance, and accounts receivable factoring for US$14.437 billion, and (2) export negotiation for US$1.464 billion. The volume of import related banking business of all OBUs was US$14.274 billion.
The turnover of other derivative products trading by all OBUs in October 2006 was US$10.833 billion including (1) options for US$8.646 billion, (2) financial futures for US$1.993 billion, (3) foreign currency interest rate swaps for US$104million, (4) margin account trading for US$48 million, (5) credit derivatives for US$25 million, (6) equity swaps US$13 million, (7) foreign currency interest rate swaps for US$4 million.
Note: The next dissemination will be made at 16:20 p.m. on January 8, 2007.