Overview of offshore banking units (September 2008)
PRESS RELEASE Release Date: November 10, 2008
Overview of offshore banking units (September 2008)
At the end of September 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$96.597 billion at the end of September 2008, an increase of US$10.750 billion or 12.52% compared to the same period of the previous year. Domestic bank OBUs accounted for US$71.503 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$25.094 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in September 2008 was US$19.151 billion consisting of (1) spot transactions for US$12.490 billion, (2) outright forwards for US$3.893 billion, and (3) foreign exchange swaps for US$2.768 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 53%, (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 30% of total liabilities, and other liabilities plus the equity of head office for 8%. In terms of the area of origin, Asia accounted for 72%, followed by America for 21%, 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 46% of total assets including (1) due from related offices for 29%, (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 12%, and (3) other assets for 7%. 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 September 2008 was US$34.232 billion, of which 97% was extended to overseas clients, including long-term loans for US$19.738 billion and short-term loans for US$13.305 billion. The remaining 3% was extended to local clients for US$1.189 billion.
The volume of export related banking business of all OBUs in September 2008 was US$23.440 billion including (1) export collection, export remittance, and accounts receivable factoring for US$21.894 billion and (2) export negotiation for US$1.546 billion. The volume of import related banking business of all OBUs was US$19.819 billion.
The turnover of other derivative products trading by all OBUs in September 2008 was US$25.336 billion including (1) financial futures for US$14.909 billion, (2) options for US$9.326 billion, (3) margin account trading for US$536 million, (4) foreign currency interest rate swaps for US$292 million, (5) credit derivatives for US$251 million, (6) commodity swaps for US$13 million, and (7) commodity forward contracts for US$9 million.
Note: The next dissemination will be made at 16:20 p.m. on December 9, 2008.