Overview of offshore banking units (December 2008)
PRESS RELEASE Release Date: February 17, 2009
Overview of offshore banking units (December 2008)
At the end of December 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$98.632 billion at the end of December 2008, an increase of US$7.351 billion or 8.05% compared to the same period of the previous year. Domestic bank OBUs accounted for US$71.567 billion or 73% of these combined assets, and foreign bank OBUs accounted for US$27.065 billion or 27% of the total.
The turnover of foreign exchange trading by all OBUs in December 2008 was US$11.211 billion consisting of (1) spot transactions for US$6.455 billion, (2) outright forwards for US$2.650 billion, and (3) foreign exchange swaps for US$2.106 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 54%, (2) deposits by financial institutions situated locally for 3%, (3) inter-OBU deposits for 3%, and (4) deposits by financial institutions located overseas for 1%. The other sources of funds included deposits by non-financial institutions accounting for 32% of total liabilities, and other liabilities plus the equity of head office for 7%. In terms of the area of origin, Asia accounted for 70%, followed by America for 22%, Europe for 6%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 49% of total assets including (1) due from related offices for 34%, (2) deposits overseas for 10%, (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 33%, (2) security investments for 11%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 60%, followed by America for 24%, Europe for 14%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of December 2008 was US$33.117 billion, of which 97% was extended to overseas clients, including long-term loans for US$20.207 billion and short-term loans for US$11.801 billion. The remaining 3% was extended to local clients for US$1.109 billion.
The volume of export related banking business of all OBUs in December 2008 was US$24.696 billion including (1) export collection, export remittance, and accounts receivable factoring for US$23.372 billion and (2) export negotiation for US$1.324 billion. The volume of import related banking business of all OBUs was US$21.409billion.
The turnover of other derivative products trading by all OBUs in December 2008 was US$14.917 billion including (1) financial futures for US$10.025 billion, (2) options for US$4.125 billion, (3) foreign currency interest rate swaps for US$596 million, (4) credit derivatives for US$100 million, (5) margin account trading for US$60 million, (6) commodity forward contracts for US$10 million, and (7) commodity swaps for US$1 million.
Note: The next dissemination will be made at 16:20 p.m. on March 12, 2009.