Overview of offshore banking units (April 2006)
PRESS RELEASE Release Date: June 7, 2006
Overview of offshore banking units (April 2006)
At the end of April 2006, there were 69 offshore banking units (OBUs) including 41 domestic banks and 28 foreign banks. The combined assets of all OBUs amounted to US$70.345 billion at the end of April 2006, an increase of US$944 million or 1.36% compared to the same period of the previous year. Domestic bank OBUs accounted for US$52.163 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$18.182 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in April 2006 was US$9.829 billion consisting of (1) spot transactions for US$5.727 billion, (2) foreign exchange swaps for US$ 2.259 billion, and (3) outright forwards for US$1.843 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 5%, (3) deposits by financial institutions located overseas for 3%, and (4) inter-OBU deposits for 3%. The other sources of funds included deposits by non-financial institutions, accounting for 31% of total liabilities, and other liabilities plus the equity of head office for 8%. In terms of the area of origin, Asia accounted for 68%, followed by America for 22%, Europe for 5%, and other areas for 5%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 53% of total assets including (1) due from related offices for 33%, (2) deposits overseas for 14%, (3) deposits with domestic OBUs for 3%, and (4) deposits with other domestic financial institutions for 3 %. The other uses of funds included (1) loans for 26%, (2) security investments for 14%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 62%, followed by America for 24%, Europe for 11%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of April 2006 was US$18.647 billion, of which 92% was extended to overseas clients, including long-term loans for US$9.960 billion and short-term loans for US$7.228 billion. The remaining 8% was extended to local clients for US$1.459 billion.
The volume of export related banking business of all OBUs in April 2006 was US$12.490 billion including (1) export collection, export remittance, and accounts receivable factoring for US$11.321 billion, and (2) export negotiation for US$1.178 billion. The volume of import related banking business of all OBUs was US$13.008 billion.
The turnover of other derivative products trading by all OBUs in April 2006 was US$12.252 billion including (1) options for US$7.459 billion, (2) financial futures for US$4.560 billion, (3) foreign currency interest rate swaps for US$124 million, (4) margin account trading for US$100 million, (5) credit derivatives for US$5 million, and (6) cross currency swaps（not involving NT dollar）for US$4 million.
Note: The next dissemination will be made at 16:20 p.m. on July 7, 2006.