Overview of offshore banking units (May 2007)
PRESS RELEASE Release Date: July 9, 2007
Overview of offshore banking units (May 2007)
At the end of May 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$82.816 billion at the end of May 2007, a new record, and an increase of US$11.610 billion or 16.30% compared to the same period of the previous year. Domestic bank OBUs accounted for US$62.684 billion or 76% of these combined assets, and foreign bank OBUs accounted for US$20.132 billion or 24% of the total.
The turnover of foreign exchange trading by all OBUs in May 2007 was US$9.377 billion consisting of (1) spot transactions for US$5.087 billion, (2) outright forwards for US$3.032 billion, and (3) foreign exchange swaps for US$1.258 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 62% of total liabilities including (1) due to related offices for 54%, (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 30% of total liabilities, and other liabilities plus the equity of head office for 8%. In terms of the area of origin, Asia accounted for 72%, followed by America for 21%, Europe for 6%, and other areas for 1%.
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 26%, (2) deposits overseas for 21%, (3) deposits with other domestic financial institutions for 3 %, (4) deposits with domestic OBUs for 2%. The other uses of funds included (1) loans for 27%, (2) security investments for 15%, and (3) other assets for 6%. 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 May 2007 was US$22.176 billion, of which 96% was extended to overseas clients, including long-term loans for US$12.910 billion and short-term loans for US$8.291 billion. The remaining 4% was extended to local clients for US$975 million.
The volume of export related banking business of all OBUs in May 2007 was US$18.602 billion including (1) export collection, export remittance, and accounts receivable factoring for US$17.018 billion, and (2) export negotiation for US$1.584 billion. The volume of import related banking business of all OBUs was US$16.179 billion.
The turnover of other derivative products trading by all OBUs in May 2007 was US$13.773 billion including (1) financial futures for US$7.517 billion, (2) options for US$5.914 billion, (3) foreign currency interest rate swaps for US$183 million, (4)equity swaps for US$62 million, (5) margin account trading for US$51 million, (6) credit derivatives for US$30 million, (7) commodity swaps for US$14 million, and (8) cross currency swaps（not involving NT dollar）for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on August 7, 2007.