Overview of offshore banking units (August 2007)
PRESS RELEASE Release Date: October 9, 2007
Overview of offshore banking units (August 2007)
At the end of August 2007, there were 65 offshore banking units (OBUs) including 38 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$86.347 billion at the end of August 2007, a new record, and an increase of US$15.211 billion or 21.38% compared to the same period of the previous year. Domestic bank OBUs accounted for US$64.373 billion or 75% of these combined assets, and foreign bank OBUs accounted for US$21.974 billion or 25% of the total.
The turnover of foreign exchange trading by all OBUs in August 2007 was US$11.055 billion consisting of (1) spot transactions for US$6.584 billion, (2) outright forwards for US$1.953 billion, and (3) foreign exchange swaps for US$2.518 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 53%, (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 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 68%, followed by America for 21%, Europe for 9%, 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 30%, (2) deposits overseas for 17%, (3) deposits with other domestic financial institutions for 2 %, (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 7%. Asia was the main destination for funds, accounting for 56%, followed by America for 25%, Europe for 17%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of August 2007 was US$23.105 billion, of which 96% was extended to overseas clients, including long-term loans for US$13.587 billion and short-term loans for US$8.590 billion. The remaining 4% was extended to local clients for US$928 million.
The volume of export related banking business of all OBUs in August 2007 was US$19.260 billion including (1) export collection, export remittance, and accounts receivable factoring for US$17.561 billion, and (2) export negotiation for US$1.699 billion. The volume of import related banking business of all OBUs was US$18.607 billion.
The turnover of other derivative products trading by all OBUs in August 2007 was US$34.078 billion including (1) financial futures for US$22.497 billion, (2) options for US$9.674 billion, (3) credit derivatives for US$859 million, (4) margin account trading for US$602 million, (5) foreign currency interest rate swaps for US$288 million, (6) cross currency swaps (not involving the NT dollar) for US$148 million, (7) equity swaps for US$8 million, and (8) commodity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on November 7, 2007.