Overview of offshore banking units (December 2006)
PRESS RELEASE Release Date: February 7, 2007
Overview of offshore banking units (December 2006)
At the end of December 2006, there were 66 offshore banking units (OBUs) including 39 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$76.686 billion at the end of December 2006, a new record, and an increase of US$6.528 billion or 9.30% compared to the same period of the previous year. Domestic bank OBUs accounted for US$57.709 billion or 75% of these combined assets, and foreign bank OBUs accounted for US$18.977 billion or 25% of the total.
The turnover of foreign exchange trading by all OBUs in December 2006 was US$7.960 billion consisting of (1) spot transactions for US$4.467 billion, (2) foreign exchange swaps for US$ 1.958 billion, and (3) outright forwards for US$1.535 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 61% of total liabilities including (1) due to related offices for 50%, (2) deposits by financial institutions situated locally for 6%, (3) inter-OBU deposits for 4%, and (4) deposits by financial institutions located overseas for 1%. The other sources of funds included deposits by non-financial institutions accounting for 32% of total liabilities, and other liabilities plus the equity of head office for 7%. In terms of the area of origin, Asia accounted for 71%, followed by America for 23%, Europe for 5%, and other areas for 1%.
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 30%, (2) deposits overseas for 14%, (3) deposits with domestic OBUs for 4%, (4) deposits with other domestic financial institutions for 4 %. 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 61%, followed by America for 25%, Europe for 12%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of December 2006 was US$20.438 billion, of which 95% was extended to overseas clients, including long-term loans for US$11.479 billion and short-term loans for US$7.843 billion. The remaining 5% was extended to local clients for US$1.116 billion.
The volume of export related banking business of all OBUs in December 2006 was US$20.466 billion including (1) export collection, export remittance, and accounts receivable factoring for US$19.004 billion, and (2) export negotiation for US$1.462 billion. The volume of import related banking business of all OBUs was US$18.286 billion.
The turnover of other derivative products trading by all OBUs in December 2006 was US$9.787 billion including (1) options for US$5.223 billion, (2) financial futures for US$4.275 billion, (3) foreign currency interest rate swaps for US$203million, (4) margin account trading for US$42 million, (5) credit derivatives for US$41 million, (6) equity swaps 3 million.
Note: The next dissemination will be made at 16:20 p.m. on March 19, 2007.