Overview of offshore banking units (May 2009)
PRESS RELEASE Release Date: July 8, 2009
Overview of offshore banking units (May 2009)
At the end of May 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$101.369 billion at the end of May 2009, an increase of US$5.353 billion or 5.58% compared to the same period of the previous year. Domestic bank OBUs accounted for US$76.214 billion or 75% of these combined assets, and foreign bank OBUs accounted for US$25.155 billion or 25% of the total.
The turnover of foreign exchange trading by all OBUs in May 2009 was US$12.008 billion consisting of (1) spot transactions for US$6.217 billion, (2) outright forwards for US$3.699 billion, and (3) foreign exchange swaps for US2.092 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) deposits by financial institutions situated locally for 3%, (2) deposits by financial institutions located overseas for 1%, (3) inter-OBU deposits for 3%, and (4) due to related offices for 54%. 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 72%, followed by America for 22%, Europe for 4%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 53% of total assets including (1) deposits with other domestic financial institutions for 3%, (2) deposits overseas for 16%, (3) deposits with domestic OBUs for 3%, and (4) due from related offices for 31%. The other uses of funds included (1) loans for 30%, (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 23%, Europe for 16%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of May 2009 was US$29.990 billion, of which 97% was extended to overseas clients, including long-term loans for US$19.828 billion and short-term loans for US$9.277 billion. The remaining 3% was extended to local clients for US$885 million.
The volume of export related banking business of all OBUs in May 2009 was US$17.273 billion including (1) export collection, export remittance, and accounts receivable factoring for US$16.278 billion and (2) export negotiation for US$995 million. The volume of import related banking business of all OBUs was US$15.651 billion.
The turnover of other derivative products trading by all OBUs in May 2009 was US$25.583 billion including (1) financial futures for US$18.596 billion, (2) options for US$6.246 billion, (3) foreign currency interest rate swaps for US$550 million, (4) margin account trading for US$91 million, (5) credit derivatives for US$85 million, (6) commodity forward contracts for US$11 million, and (7) commodity swaps for US$4 million.
Note: The next dissemination will be made at 16:20 p.m. on August 10, 2009.