Overview of offshore banking units (February 2007)
PRESS RELEASE Release Date: April 12, 2007
Overview of offshore banking units (February 2007)
At the end of February 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$75.989 billion at the end of February 2007, an increase of US$7.673 billion or 11.23% compared to the same period of the previous year. Domestic bank OBUs accounted for US$56.072 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$19.917 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in February 2007 was US$7.323 billion consisting of (1) spot transactions for US$3.447 billion, (2) outright forwards for US$2.176 billion, and (3) foreign exchange swaps for US$ 1.700 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 59% 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 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 9%. 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 other domestic financial institutions for 3 %, (4) deposits with domestic OBUs for 2%. The other uses of funds included (1) loans for 27%, (2) security investments for 15%, and (3) other assets for 8%. Asia was the main destination for funds, accounting for 58%, followed by America for 26%, Europe for 14%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of February 2007 was US$20.860 billion, of which 95% was extended to overseas clients, including long-term loans for US$11.785 billion and short-term loans for US$8.039 billion. The remaining 5% was extended to local clients for US$1.036 billion.
The volume of export related banking business of all OBUs in February 2007 was US$13.007 billion including (1) export collection, export remittance, and accounts receivable factoring for US$11.717 billion, and (2) export negotiation for US$1.290 billion. The volume of import related banking business of all OBUs was US$12.429 billion.
The turnover of other derivative products trading by all OBUs in February 2007 was US$22.014 billion including (1) financial futures for US$17.246 billion, (2) options for US$4.263 billion, (3) foreign currency interest rate swaps for US$267 million, (4) margin account trading for US$122 million, (5) equity swaps for US$78 million, (6) credit derivatives for US$30 million, and (7) cross currency swaps(not involving NT dollar)for US$8 million.
Note: The next dissemination will be made at 16:20 p.m. on May 9, 2007.