Overview of offshore banking units (July 2006)
PRESS RELEASE Release Date: September 7, 2006
Overview of offshore banking units (July 2006)
At the end of July 2006, there were 68 offshore banking units (OBUs) including 41 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$69.419 billion at the end of July 2006, an increase of US$5.904 billion or 9.30% compared to the same period of the previous year. Domestic bank OBUs accounted for US$51.438 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$17.981 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in July 2006 was US$9.376 billion consisting of (1) spot transactions for US$4.869 billion, (2) foreign exchange swaps for US$ 3.008 billion, and (3) outright forwards for US$1.499 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 49%, (2) deposits by financial institutions situated locally for 6%, (3) deposits by financial institutions located overseas for 3%, 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 8%. In terms of the area of origin, Asia accounted for 66%, followed by America for 22%, Europe for 6%, and other areas for 6%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 50% of total assets including (1) due from related offices for 33%, (2) deposits overseas for 12%, (3) deposits with domestic OBUs for 2%, and (4) deposits with other domestic financial institutions for 3 %. The other uses of funds included (1) loans for 27%, (2) security investments for 15%, and (3) other assets for 8%. Asia was the main destination for funds, accounting for 59%, followed by America for 26%, Europe for 12%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of July 2006 was US$19.133 billion, of which 93% was extended to overseas clients, including long-term loans for US$10.441 billion and short-term loans for US$7.323 billion. The remaining 7% was extended to local clients for US$1.369 billion.
The volume of export related banking business of all OBUs in July 2006 was US$14.611 billion including (1) export collection, export remittance, and accounts receivable factoring for US$13.040 billion, and (2) export negotiation for US$1.571 billion. The volume of import related banking business of all OBUs was US$13.969 billion.
The turnover of other derivative products trading by all OBUs in July 2006 was US$9.496 billion including (1) options for US$6.542 billion, (2) financial futures for US$2.423 billion, (3) foreign currency interest rate swaps for US$413 million, (4) margin account trading for US$48 million, (5) cross currency swaps (not involving NT dollar) for US$35 million, (6) credit derivatives for US$33 million, and (7) equity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on October 12, 2006.