Central Bank of the Republic of China （Taiwan）
PRESS RELEASE Release Date: September 8, 2009

Overview of offshore banking units (July 2009)

At the end of July 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$93.508 billion at the end of July 2009, a decrease of US$3.899 billion or 4.00% compared to the same period of the previous year. Domestic bank OBUs accounted for US$72.147 billion or 77% of these combined assets, and foreign bank OBUs accounted for US$21.361 billion or 23% of the total.

The turnover of foreign exchange trading by all OBUs in July 2009 was US$15.301 billion consisting of (1) spot transactions for US$8.698 billion, (2) foreign exchange swaps for US3.365 billion, and (3) outright forwards for US$3.238 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 57% of total liabilities including (1) deposits by financial institutions situated locally for 3%, (2) deposits by financial institutions located overseas for 3%, (3) inter-OBU deposits for 2%, and (4) due to related offices for 49%. The other sources of funds included deposits by non-financial institutions accounting for 35% 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 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 50% of total assets including (1) deposits with other domestic financial institutions for 2%, (2) deposits overseas for 15%, (3) deposits with domestic OBUs for 2%, and (4) due from related offices for 31%. The other uses of funds included (1) loans for 31%, (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 July 2009 was US$28.911 billion, of which 97% was extended to overseas clients, including long-term loans for US$19.316 billion and short-term loans for US$8.766 billion. The remaining 3% was extended to local clients for US$829 million.

The volume of export related banking business of all OBUs in July 2009 was US$20.052 billion including (1) export collection, export remittance, and accounts receivable factoring for US$18.839 billion and (2) export negotiation for US$1.213 billion. The volume of import related banking business of all OBUs was US$19.148 billion.

The turnover of other derivative products trading by all OBUs in July 2009 was US$25.176 billion including (1) financial futures for US$15.338 billion, (2) options for US$9.134 billion, (3) credit derivatives for US$397 million, (4) foreign currency interest rate swaps for US$195 million, (5) margin account trading for US$91 million, (6) commodity forward contracts for US$17 million, and (7) commodity swaps for US$4 million.

Note: The next dissemination will be made at 16:20 p.m. on October 7, 2009.