Overview of offshore banking units (June 2008)
PRESS RELEASE Release Date: August 7, 2008
Overview of offshore banking units (June 2008)
At the end of June 2008, there were 63 offshore banking units (OBUs) including 36 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$93.332 billion at the end of June 2008, an increase of US$11.214 billion or 13.66% compared to the same period of the previous year. Domestic bank OBUs accounted for US$68.970 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$24.362 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in June 2008 was US$15.497 billion consisting of (1) spot transactions for US$10.098 billion, (2) outright forwards for US$3.475 billion, and (3) foreign exchange swaps for US$1.924 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 61% of total liabilities including (1) due to related offices for 52%, (2) deposits by financial institutions situated locally for 4%, (3) inter-OBU deposits for 3%, and (4) deposits by financial institutions located overseas for 2%. The other sources of funds included deposits by non-financial institutions accounting for 29% of total liabilities, and other liabilities plus the equity of head office for 10%. In terms of the area of origin, Asia accounted for 71%, followed by America for 20%, 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 46% of total assets including (1) due from related offices for 28%, (2) deposits overseas for 13%, (3) deposits with domestic OBUs for 3%, and (4) deposits with other domestic financial institutions for 2 %. The other uses of funds included (1) loans for 32%, (2) security investments for 13%, and (3) other assets for 9%. Asia was the main destination for funds, accounting for 58%, followed by America for 25%, Europe for 15%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of June 2008 was US$30.266 billion, of which 97% was extended to overseas clients, including long-term loans for US$16.574 billion and short-term loans for US$12.702 billion. The remaining 3% was extended to local clients for US$990 million.
The volume of export related banking business of all OBUs in June 2008 was US$21.200 billion including (1) export collection, export remittance, and accounts receivable factoring for US$19.623 billion and (2) export negotiation for US$1.577 billion. The volume of import related banking business of all OBUs was US$18.770 billion.
The turnover of other derivative products trading by all OBUs in June 2008 was US$29.563 billion including (1) financial futures for US$14.501 billion, (2) options for US$13.961 billion, (3) credit derivatives for US$832 million, (4) foreign currency interest rate swaps for US$141 million, (5) margin account trading for US$124 million, and (6) commodity swaps for 4 million.
Note: The next dissemination will be made at 16:20 p.m. on September 9, 2008.