Overview of offshore banking units (July 2008)
PRESS RELEASE Release Date: September 9, 2008
Overview of offshore banking units (July 2008)
At the end of July 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$97.407 billion at the end of July 2008, an increase of US$12.997 billion or 15.40% compared to the same period of the previous year. Domestic bank OBUs accounted for US$69.828 billion or 72% of these combined assets, and foreign bank OBUs accounted for US$27.579 billion or 28% of the total.
The turnover of foreign exchange trading by all OBUs in July 2008 was US$15.451 billion consisting of (1) spot transactions for US$9.948 billion, (2) outright forwards for US$3.270 billion, and (3) foreign exchange swaps for US$2.233 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 52%, (2) deposits by financial institutions situated locally for 5%, (3) deposits by financial institutions located overseas for 3%, and (4) inter-OBU deposits 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 10%. In terms of the area of origin, Asia accounted for 70%, followed by America for 20%, Europe for 8%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 45% of total assets including (1) due from related offices for 30%, (2) deposits overseas for 11%, (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 33%, (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 July 2008 was US$31.992 billion, of which 96% was extended to overseas clients, including long-term loans for US$17.581 billion and short-term loans for US$13.233 billion. The remaining 4% was extended to local clients for US$1.178 billion.
The volume of export related banking business of all OBUs in July 2008 was US$21.350 billion including (1) export collection, export remittance, and accounts receivable factoring for US$19.597 billion and (2) export negotiation for US$1.753 billion. The volume of import related banking business of all OBUs was US$19.483 billion.
The turnover of other derivative products trading by all OBUs in July 2008 was US$29.252 billion including (1) financial futures for US$15.114 billion, (2) options for US$13.109 billion, (3) foreign currency interest rate swaps for US$651 million, (4) margin account trading for US$190 million, (5) credit derivatives for US$157 million, (6) commodity swaps for US$27 million, and (7) cross currency swaps（not involving the NT dollar）for US$4 million.
Note: The next dissemination will be made at 16:20 p.m. on October 7, 2008.