Overview of offshore banking units (June 2009)
PRESS RELEASE Release Date: August 10, 2009
Overview of offshore banking units (June 2009)
At the end of June 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$96.251 billion at the end of June 2009, an increase of US$2.919 billion or 3.13% compared to the same period of the previous year. Domestic bank OBUs accounted for US$72.841 billion or 76% of these combined assets, and foreign bank OBUs accounted for US$23.410 billion or 24% of the total.
The turnover of foreign exchange trading by all OBUs in June 2009 was US$13.728 billion consisting of (1) spot transactions for US$8.478 billion, (2) outright forwards for US$2.649 billion, and (3) foreign exchange swaps for US2.601 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 59% 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 52%. The other sources of funds included deposits by non-financial institutions accounting for 34% 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 24%, 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 51% of total assets including (1) deposits with other domestic financial institutions for 2%, (2) deposits overseas for 15%, (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 13%, and (3) other assets for 6%. Asia was the main destination for funds, accounting for 59%, followed by America for 25%, Europe for 14%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of June 2009 was US$29.303 billion, of which 97% was extended to overseas clients, including long-term loans for US$19.327 billion and short-term loans for US$9.146 billion. The remaining 3% was extended to local clients for US$830 million.
The volume of export related banking business of all OBUs in June 2009 was US$20.738 billion including (1) export collection, export remittance, and accounts receivable factoring for US$19.446 billion and (2) export negotiation for US$1.292 billion. The volume of import related banking business of all OBUs was US$18.865 billion.
The turnover of other derivative products trading by all OBUs in June 2009 was US$32.313 billion including (1) financial futures for US$22.808 billion, (2) options for US$8.383 billion, (3) foreign currency interest rate swaps for US$821 million, (4) margin account trading for US$116 million, (5) credit derivatives for US$114 million, (6) cross currency swaps for 67 million, (7) equity swaps for US$2 million, (8) commodity forward contracts for US$1 million, and (9) commodity swaps for US$1 million.
Note: The next dissemination will be made at 16:20 p.m. on September 8, 2009.