Overview of offshore banking units (June 2007)
PRESS RELEASE Release Date: August 7, 2007
Overview of offshore banking units (June 2007)
At the end of June 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$82.118 billion at the end of June 2007, an increase of US$12.050 billion or 17.20% compared to the same period of the previous year. Domestic bank OBUs accounted for US$61.999 billion or 75% of these combined assets, and foreign bank OBUs accounted for US$20.119 billion or 25% of the total.
The turnover of foreign exchange trading by all OBUs in June 2007 was US$9.042 billion consisting of (1) spot transactions for US$5.574 billion, (2) outright forwards for US$2.081 billion, and (3) foreign exchange swaps for US$1.387 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 54%, (2) deposits by financial institutions situated locally for 4%, (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 30% of total liabilities, and other liabilities plus the equity of head office for 9%. In terms of the area of origin, Asia accounted for 71%, followed by America for 21%, 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 51% of total assets including (1) due from related offices for 26%, (2) deposits overseas for 20%, (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 16%, and (3) other assets for 6%. Asia was the main destination for funds, accounting for 55%, followed by America for 26%, Europe for 17%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of June 2007 was US$22.360 billion, of which 96% was extended to overseas clients, including long-term loans for US$13.077 billion and short-term loans for US$8.360 billion. The remaining 4% was extended to local clients for US$923 million.
The volume of export related banking business of all OBUs in June 2007 was US$18.791 billion including (1) export collection, export remittance, and accounts receivable factoring for US$17.297 billion, and (2) export negotiation for US$1.494 billion. The volume of import related banking business of all OBUs was US$16.350 billion.
The turnover of other derivative products trading by all OBUs in June 2007 was US$19.428 billion including (1) financial futures for US$11.866 billion, (2) options for US$7.114 billion, (3) credit derivatives for US$235 million (4) foreign currency interest rate swaps for US$112 million, (5) margin account trading for US$83 million, (6) equity swaps for US$13 million, (7) cross currency swaps (not involving the NT dollar) for US$3 million, and (8) commodity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on September 7, 2007.