Overview of offshore banking units (October 2007)
PRESS RELEASE Release Date: December 7, 2007
Overview of offshore banking units (October 2007)
At the end of October 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$86.457 billion at the end of October 2007, a new record, and an increase of US$16.646 billion or 23.84% compared to the same period of the previous year. Domestic bank OBUs accounted for US$63.409 billion or 73% of these combined assets, and foreign bank OBUs accounted for US$23.048 billion or 27% of the total.
The turnover of foreign exchange trading by all OBUs in October 2007 was US$9.793 billion consisting of (1) spot transactions for US$5.582 billion, (2) outright forwards for US$2.261 billion, and (3) foreign exchange swaps for US$1.950 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 52%, (2) deposits by financial institutions situated locally for 5%, (3) inter-OBU deposits for 1%, and (4) deposits by financial institutions located overseas for 2%. 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 9%. In terms of the area of origin, Asia accounted for 68%, followed by America for 22%, Europe for 8%, 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 3 %, and (4) deposits with domestic OBUs for 1%. 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 October 2007 was US$23.462 billion, of which 96% was extended to overseas clients, including long-term loans for US$13.991 billion and short-term loans for US$8.564 billion. The remaining 4% was extended to local clients for US$907 million.
The volume of export related banking business of all OBUs in October 2007 was US$21.871 billion including (1) export collection, export remittance, and accounts receivable factoring for US$20.362 billion and (2) export negotiation for US$1.509 billion. The volume of import related banking business of all OBUs was US$20.370 billion.
The turnover of other derivative products trading by all OBUs in October 2007 was US$25.399 billion including (1) financial futures for US$16.742 billion, (2)options for US$7.941 billion, (3) credit derivatives for US$250 million, (4) foreign currency interest rate swaps for US$239 million, (5) margin account trading for US$140 million, (6) equity swaps for US$64 million, (7) commodity swaps for US$21 million, and (8) cross currency swaps (not involving the NT dollar) for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on January 8, 2008.