Overview of offshore banking units (October 2009)
PRESS RELEASE Release Date: December 8, 2009
Overview of offshore banking units (October 2009)
At the end of October 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$93.930 billion at the end of October 2009, a decrease of US$3.408 billion or 3.50% compared to the same period of the previous year. Domestic bank OBUs accounted for US$80.762 billion or 86% of these combined assets, and foreign bank OBUs accounted for US$13.168 billion or 14% of the total.
The turnover of foreign exchange trading by all OBUs in October 2009 was US$14.902 billion consisting of (1) spot transactions for US$7.833 billion, (2) outright forwards for US$3.879 billion, and (3) foreign exchange swaps for US3.190 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 56% of total liabilities including (1) deposits by financial institutions situated locally for 4%, (2) deposits by financial institutions located overseas for 4%, (3) inter-OBU deposits for 2%, and (4) due to related offices for 46%. 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 9%. In terms of the area of origin, Asia accounted for 71%, followed by America for 23%, 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 48% of total assets including (1) deposits with other domestic financial institutions for 1%, (2) deposits overseas for 21%, (3) deposits with domestic OBUs for 2%, and (4) due from related offices for 24%. The other uses of funds included (1) loans for 31%, (2) security investments for 14%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 60%, followed by America for 24%, Europe for 14%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of October 2009 was US$29.471 billion, of which 97% was extended to overseas clients, including long-term loans for US$19.451 billion and short-term loans for US$9.222 billion. The remaining 3% was extended to local clients for US$798 million.
The volume of export related banking business of all OBUs in October 2009 was US$22.382 billion including (1) export collection, export remittance, and accounts receivable factoring for US$21.271 billion and (2) export negotiation for US$1.111 billion. The volume of import related banking business of all OBUs was US$21.669 billion.
The turnover of other derivative products trading by all OBUs in October 2009 was US$32.476 billion including (1) financial futures for US$20.942 billion, (2) options for US$10.155 billion, (3) credit derivatives for US$689 million, (4) foreign currency interest rate swaps for US$560 million, (5) margin account trading for US$122 million, (6) cross currency swaps for 7 million, and (7) commodity forward contracts for US$1 million.
Note: The next dissemination will be made at 16:20 p.m. on January 4, 2010.