Overview of offshore banking units (January 2008)
PRESS RELEASE Release Date: March 14, 2008
Overview of offshore banking units (January 2008)
At the end of January 2008, there were 65 offshore banking units (OBUs) including 38 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$93.132 billion at the end of January 2008, a new record, and an increase of US$18.850 billion or 25.38% compared to the same period of the previous year. Domestic bank OBUs accounted for US$65.160 billion or 70% of these combined assets, and foreign bank OBUs accounted for US$27.972 billion or 30% of the total.
The turnover of foreign exchange trading by all OBUs in January 2008 was US$12.682 billion consisting of (1) spot transactions for US$7.480 billion, (2) outright forwards for US$2.873 billion, and (3) foreign exchange swaps for US$2.329 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 29% of total liabilities, and other liabilities plus the equity of head office for 10%. In terms of the area of origin, Asia accounted for 69%, followed by America for 21%, Europe for 9%, and other areas for 1%.
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 32%, (2) deposits overseas for 15%, (3) deposits with other domestic financial institutions for 2 %, and (4) deposits with domestic OBUs for 2%. The other uses of funds included (1) loans for 28%, (2) security investments for 13%, and (3) other assets for 8%. Asia was the main destination for funds, accounting for 56%, followed by America for 24%, Europe for 18%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of January 2008 was US$25.656 billion, of which 97% was extended to overseas clients, including long-term loans for US$14.911 billion and short-term loans for US$9.898 billion. The remaining 3% was extended to local clients for US$847 million.
The volume of export related banking business of all OBUs in January 2008 was US$23.629 billion including (1) export collection, export remittance, and accounts receivable factoring for US$21.963 billion and (2) export negotiation for US$1.666 billion. The volume of import related banking business of all OBUs was US$23.731 billion.
The turnover of other derivative products trading by all OBUs in January 2008 was US$38.321 billion including (1) financial futures for US$25.151 billion, (2) options for US$12.643 billion, (3) margin account trading for US$304 million, (4) credit derivatives for US$106 million, (5) foreign currency interest rate swaps for US$98 million, (6) equity swaps for US$9 million, (7) commodity swaps for 6 million, (8) cross currency swaps (not involving the NT dollar) for 4 million.
Note: The next dissemination will be made at 16:20 p.m. on April 8, 2008.