Overview of offshore banking units (April 2007)
PRESS RELEASE Release Date: June 7, 2007
Overview of offshore banking units (April 2007)
At the end of April 2007, there were 66 offshore banking units(OBUs) including 39 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$76.935 billion at the end of April 2007, a new record, and an increase of US$6.590 billion or 9.37% compared to the same period of the previous year. Domestic bank OBUs accounted for US$59.127 billion or 77% of these combined assets, and foreign bank OBUs accounted for US$17.808 billion or 23% of the total.
The turnover of foreign exchange trading by all OBUs in April 2007 was US$9.388 billion consisting of (1) spot transactions for US$4.784 billion, (2) outright forwards for US$2.702 billion, and (3) foreign exchange swaps for US$1.902 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 59% of total liabilities including (1) due to related offices for 51%, (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 32% of total liabilities, and other liabilities plus the equity of head office for 9%. In terms of the area of origin, Asia accounted for 69%, followed by America for 23%, 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 50% of total assets including (1) due from related offices for 26%, (2) deposits overseas for 18%, (3) deposits with other domestic financial institutions for 4 %, (4) deposits with domestic OBUs for 2%. The other uses of funds included (1) loans for 27%, (2) security investments for 16%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 57%, followed by America for 26%, Europe for 15%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of April 2007 was US$21.078 billion, of which 95% was extended to overseas clients, including long-term loans for US$12.181 billion and short-term loans for US$7.926 billion. The remaining 5% was extended to local clients for US$971 million.
The volume of export related banking business of all OBUs in April 2007 was US$16.064 billion including (1) export collection, export remittance, and accounts receivable factoring for US$14.578 billion, and (2) export negotiation for US$1.486 billion. The volume of import related banking business of all OBUs was US$15.617 billion.
The turnover of other derivative products trading by all OBUs in April 2007 was US$18.621 billion including (1) financial futures for US$11.233 billion, (2) options for US$6.803 billion, (3) credit derivatives for US$314 million, (4) foreign currency interest rate swaps for US$86 million, (5) margin account trading for US$76 million, (6) equity swaps for US$60 million, (7) commodity swaps for US$45 million, and (8) cross currency swaps (not involving NT dollar) for US$4 million.
Note: The next dissemination will be made at 16:20 p.m. on July 9, 2007.