Overview of offshore banking units (January 2009)
PRESS RELEASE Release Date: March 12, 2009
Overview of offshore banking units (January 2009)
At the end of January 2009, there were 63 offshore banking units (OBUs) including 36 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$94.789 billion at the end of January 2009, an increase of US$1.657 billion or 1.78% compared to the same period of the previous year. Domestic bank OBUs accounted for US$69.779 billion or 74% of these combined assets, and foreign bank OBUs accounted for US$25.010 billion or 26% of the total.
The turnover of foreign exchange trading by all OBUs in January 2009 was US$7.817 billion consisting of (1) spot transactions for US$4.647 billion, (2) foreign exchange swaps for US$1.668 billion, and (3) outright forwards for US1.502 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 60% of total liabilities including (1) due to related offices for 53%, (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 8%. 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 48% of total assets including (1) due from related offices for 32%, (2) deposits overseas for 11%, (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 11%, and (3) other assets for 6%. Asia was the main destination for funds, accounting for 59%, followed by America for 24%, Europe for 15%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of January 2009 was US$32.724 billion, of which 97% was extended to overseas clients, including long-term loans for US$20.389 billion and short-term loans for US$11.226 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 January 2009 was US$14.475 billion including (1) export collection, export remittance, and accounts receivable factoring for US$13.330 billion and (2) export negotiation for US$1.145 billion. The volume of import related banking business of all OBUs was US$13.044 billion.
The turnover of other derivative products trading by all OBUs in January 2009 was US$19.532 billion including (1) financial futures for US$14.692 billion, (2) options for US$4.507 billion, (3) credit derivatives for US$182 million, (4) foreign currency interest rate swaps for US$99 million, (5) margin account trading for US$47 million, and (6) commodity swaps for US$5 million.
Note: The next dissemination will be made at 16:20 p.m. on April 13, 2009.