Overview of offshore banking units (January 2007)
PRESS RELEASE Release Date: March 19, 2007
Overview of offshore banking units (January 2007)
At the end of January 2007, there were 66 offshore banking units (OBUs) including 39 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$74.282 billion at the end of January 2007, an increase of US$7.211 billion or 10.75% compared to the same period of the previous year. Domestic bank OBUs accounted for US$54.971 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$19.311 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in January 2007 was US$9.153 billion consisting of (1) spot transactions for US$4.924 billion, (2) foreign exchange swaps for US$ 2.293 billion, and (3) outright forwards for US$1.936 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 60% of total liabilities including (1) due to related offices for 51%, (2) deposits by financial institutions situated locally for 5%, (3) inter-OBU deposits for 2%, and (4) deposits by financial institutions located overseas for 2%. 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 8%. 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 50% of total assets including (1) due from related offices for 30%, (2) deposits overseas for 15%, (3) deposits with domestic OBUs for 2%, (4) deposits with other domestic financial institutions for 3 %. The other uses of funds included (1) loans for 28%, (2) security investments for 15%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 58%, followed by America for 27%, Europe for 13%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of January 2007 was US$20.753 billion, of which 95% was extended to overseas clients, including long-term loans for US$11.612 billion and short-term loans for US$8.067 billion. The remaining 5% was extended to local clients for US$1.074 billion.
The volume of export related banking business of all OBUs in January 2007 was US$17.822 billion including (1) export collection, export remittance, and accounts receivable factoring for US$16.108 billion, and (2) export negotiation for US$1.714 billion. The volume of import related banking business of all OBUs was US$17.568 billion.
The turnover of other derivative products trading by all OBUs in January 2007 was US$17.70 billion including (1) financial futures for US$10.233 billion, (2) options for US$7.085 billion, (3) foreign currency interest rate swaps for US$149 million, (4) margin account trading for US$124 million, (5) credit derivatives for US$63 million, (6) equity swaps 28 million, (7) commodity swaps for 14 million, (8) cross currency swaps (not involving NT dollar) for 4 million.
Note: The next dissemination will be made at 16:20 p.m. on April 12, 2007.