Overview of offshore banking units (August 2008)
PRESS RELEASE Release Date: October 7, 2008
Overview of offshore banking units (August 2008)
At the end of August 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$95.644 billion at the end of August 2008, an increase of US$9.297 billion or 10.77% compared to the same period of the previous year. Domestic bank OBUs accounted for US$69.769 billion or 73% of these combined assets, and foreign bank OBUs accounted for US$25.875 billion or 27% of the total.
The turnover of foreign exchange trading by all OBUs in August 2008 was US$15.187 billion consisting of (1) spot transactions for US$11.006 billion, (2) outright forwards for US$2.268 billion, and (3) foreign exchange swaps for US$1.913 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 53%, (2) deposits by financial institutions situated locally for 5%, (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 8%. In terms of the area of origin, Asia accounted for 73%, followed by America for 20%, Europe for 5%, 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 28%, (2) deposits overseas for 12%, (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 35%, (2) security investments for 13%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 56%, followed by America for 26%, Europe for 16%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of August 2008 was US$33.196 billion, of which 96% was extended to overseas clients, including long-term loans for US$18.821 billion and short-term loans for US$13.148 billion. The remaining 4% was extended to local clients for US$1.227 billion.
The volume of export related banking business of all OBUs in August 2008 was US$22.615 billion including (1) export collection, export remittance, and accounts receivable factoring for US$20.922 billion and (2) export negotiation for US$1.693 billion. The volume of import related banking business of all OBUs was US$20.142 billion.
The turnover of other derivative products trading by all OBUs in August 2008 was US$25.690 billion including (1) financial futures for US$13.601 billion, (2) options for US$11.012 billion, (3) foreign currency interest rate swaps for US$538 million, (4) credit derivatives for US$322 million, (5) margin account trading for US$186 million, and (6) commodity swaps for US$31 million.
Note: The next dissemination will be made at 16:20 p.m. on November 10, 2008.