Overview of offshore banking units (April 2008)
PRESS RELEASE Release Date: June 9, 2008
Overview of offshore banking units (April 2008)
At the end of April 2008, there were 64 offshore banking units (OBUs) including 37 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$94.330 billion at the end of April 2008, an increase of US$17.395 billion or 22.61% compared to the same period of the previous year. Domestic bank OBUs accounted for US$68.602 billion or 73% of these combined assets, and foreign bank OBUs accounted for US$25.728 billion or 27% of the total.
The turnover of foreign exchange trading by all OBUs in April 2008 was US$15.036 billion consisting of (1) spot transactions for US$10.101 billion, (2) outright forwards for US$2.878 billion, and (3) foreign exchange swaps for US$2.057 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 63% 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 2%. The other sources of funds included deposits by non-financial institutions accounting for 28% of total liabilities, and other liabilities plus the equity of head office for 9%. In terms of the area of origin, Asia accounted for 72%, followed by America for 19%, Europe for 7%, 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 15%, (3) deposits with other domestic financial institutions for 2 %, and (4) deposits with domestic OBUs for 2%. The other uses of funds included (1) loans for 29%, (2) security investments for 13%, and (3) other assets for 8%. Asia was the main destination for funds, accounting for 58%, followed by America for 24%, Europe for 16%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of April 2008 was US$27.937 billion, of which 97% was extended to overseas clients, including long-term loans for US$15.763 billion and short-term loans for US$11.341 billion. The remaining 3% was extended to local clients for US$833 million.
The volume of export related banking business of all OBUs in April 2008 was US$20.191 billion including (1) export collection, export remittance, and accounts receivable factoring for US$18.649 billion and (2) export negotiation for US$1.542 billion. The volume of import related banking business of all OBUs was US$17.239 billion.
The turnover of other derivative products trading by all OBUs in April 2008 was US$24.183 billion including (1) options for US$11.621 billion, (2) financial futures for US$11.577 billion, (3) credit derivatives for US$391 million, (4) margin account trading for US$366 million, (5) foreign currency interest rate swaps for US$211 million, (6) currency index swaps for US$ 10 million, and (7) equity swaps for US$7 million.
Note: The next dissemination will be made at 16:20 p.m. on July 8, 2008.