Overview of offshore banking units (August 2006)
PRESS RELEASE Release Date: October 12, 2006
Overview of offshore banking units (August 2006)
At the end of August 2006, there were 67 offshore banking units (OBUs) including 40 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$71.136 billion at the end of August 2006, an increase of US$7.384 billion or 11.58% compared to the same period of the previous year. Domestic bank OBUs accounted for US$52.412 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$18.724 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in August 2006 was US$8.087 billion consisting of (1) spot transactions for US$5.318 billion, (2) foreign exchange swaps for US$ 2.021 billion, and (3) outright forwards for US$748 million.
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 49%, (2) deposits by financial institutions situated locally for 8%, (3) deposits by financial institutions located overseas for 2%, and (4) inter-OBU deposits for 2%. The other sources of funds included deposits by non-financial institutions, accounting for 32% of total liabilities, and other liabilities plus the equity of head office for 7%. In terms of the area of origin, Asia accounted for 68%, followed by America for 24%, 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 52% of total assets including (1) due from related offices for 33%, (2) deposits overseas for 13%, (3) deposits with domestic OBUs for 2%, and (4) deposits with other domestic financial institutions for 4 %. The other uses of funds included (1) loans for 27%, (2) security investments for 14%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 61%, followed by America for 26%, Europe for 11%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of August 2006 was US$19.336 billion, of which 93% was extended to overseas clients, including long-term loans for US$10.536 billion and short-term loans for US$7.457 billion. The remaining 7% was extended to local clients for US$1.343 billion.
The volume of export related banking business of all OBUs in August 2006 was US$15.457 billion including (1) export collection, export remittance, and accounts receivable factoring for US$13.822 billion, and (2) export negotiation for US$1.635 billion. The volume of import related banking business of all OBUs was US$14.804 billion.
The turnover of other derivative products trading by all OBUs in August 2006 was US$12.707 billion including (1) options for US$8.576 billion, (2) financial futures for US$3.422 billion, (3) foreign currency interest rate swaps for US$621million, (4) margin account trading for US$61 million, (5) credit derivatives for US$27 million.
Note: The next dissemination will be made at 16:20 p.m. on November 9, 2006.