Overview of offshore banking units (November 2007)
PRESS RELEASE Release Date: January 8, 2008
Overview of offshore banking units (November 2007)
At the end of November 2007, there were 65 offshore banking units (OBUs) including 38 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$87.953 billion at the end of November 2007, a new record, and an increase of US$16.655 billion or 23.36% compared to the same period of the previous year. Domestic bank OBUs accounted for US$63.729 billion or 72% of these combined assets, and foreign bank OBUs accounted for US$24.224 billion or 28% of the total.
The turnover of foreign exchange trading by all OBUs in November 2007 was US$13.070 billion consisting of (1) spot transactions for US$8.180 billion, (2) outright forwards for US$2.595 billion, and (3) foreign exchange swaps for US$2.295 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 52%, (2) deposits by financial institutions situated locally for 5%, (3) inter-OBU deposits for 1%, and (4)deposits by financial institutions located overseas for 2%. 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 10%. In terms of the area of origin, Asia accounted for 68%, followed by America for 21%, Europe for 9%, 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 31%, (2) deposits overseas for 16%, (3) deposits with other domestic financial institutions for 2 %, and (4) deposits with domestic OBUs for 1%. The other uses of funds included (1) loans for 28%, (2) security investments for 14%, and (3)other assets for 8%. Asia was the main destination for funds, accounting for 55%, followed by America for 24%, Europe for 19%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of November 2007 was US$24.430 billion, of which 96% was extended to overseas clients, including long-term loans for US$14.382 billion and short-term loans for US$9.141 billion. The remaining 4% was extended to local clients for US$907 million.
The volume of export related banking business of all OBUs in November 2007 was US$22.827 billion including (1) export collection, export remittance, and accounts receivable factoring for US$21.391 billion and (2) export negotiation for US$1.436 billion. The volume of import related banking business of all OBUs was US$23.014 billion.
The turnover of other derivative products trading by all OBUs in November 2007 was US$33.805 billion including (1) financial futures for US$21.822 billion, (2) options for US$10.816 billion, (3) credit derivatives for US$680 million, (4) margin account trading for US$299 million, (5) foreign currency interest rate swaps for US$137 million, (6) equity swaps for US$38 million, (7) commodity swaps for US$9 million, (8) commodity forward contracts for US$3 million, and (9) cross currency swaps (not involving the NT dollar) for US$1 million.
Note: The next dissemination will be made at 16:20 p.m. on February 14, 2008.