Overview of offshore banking units (August 2009)
Central Bank of the Republic of China （Taiwan）
PRESS RELEASE Release Date: October 7, 2009
At the end of August 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$94.459 billion at the end of August 2009, a decrease of US$1.185 billion or 1.24% compared to the same period of the previous year. Domestic bank OBUs accounted for US$80.197 billion or 85% of these combined assets, and foreign bank OBUs accounted for US$14.262 billion or 15% of the total. The ratio of assets held by domestic OBUs to those held by foreign bank OBUs changed significantly because Citibank N.A. transferred a sizable portion of its assets and liabilities from its local branches to its local subsidiary Citibank Taiwan Limited on August 1st, 2009.
The turnover of foreign exchange trading by all OBUs in August 2009 was US$14.165 billion consisting of (1) spot transactions for US$7.298 billion, (2) foreign exchange swaps for US3.631 billion, and (3) outright forwards for US$3.236 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 58% of total liabilities including (1) deposits by financial institutions situated locally for 4%, (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 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 50% of total assets including (1) deposits with other domestic financial institutions for 1%, (2) deposits overseas for 22%, (3) deposits with domestic OBUs for 2%, and (4) due from related offices for 25%. 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 61%, followed by America for 24%, Europe for 13%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of August 2009 was US$29.143 billion, of which 97% was extended to overseas clients, including long-term loans for US$19.352 billion and short-term loans for US$8.961 billion. The remaining 3% was extended to local clients for US$830 million.
The volume of export related banking business of all OBUs in August 2009 was US$21.026 billion including (1) export collection, export remittance, and accounts receivable factoring for US$19.825 billion and (2) export negotiation for US$1.201 billion. The volume of import related banking business of all OBUs was US$18.712 billion.
The turnover of other derivative products trading by all OBUs in August 2009 was US$24.895 billion including (1) financial futures for US$15.054 billion, (2) options for US$9.151 billion, (3) credit derivatives for US$312 million, (4) foreign currency interest rate swaps for US$277 million, (5) margin account trading for US$83 million, (6) commodity swaps for US$9 million, (7) commodity forward contracts for US$7 million and (8) equity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on November 9, 2009.