Overview of offshore banking units (December 2009)
PRESS RELEASE Release Date: February 3, 2010
Overview of offshore banking units (December 2009)
At the end of December 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$95.051 billion at the end of December 2009, an decrease of US$3.581 billion or 3.63% compared to the same period of the previous year. Domestic bank OBUs accounted for US$81.441 billion or 86% of these combined assets, and foreign bank OBUs accounted for US$13.610 billion or 14% of the total.
The turnover of foreign exchange trading by all OBUs in December 2009 was US$14.428 billion consisting of (1) spot transactions for US$8.700 billion, (2) foreign exchange swaps for US$3.124 billion, and (3) outright forwards for US$2.604 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 4%, (2) deposits by financial institutions located overseas for 3%, (3) inter-OBU deposits for 3%, and (4) due to related offices for 47%. 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 9%. In terms of the area of origin, Asia accounted for 72%, followed by America for 23%, Europe for 3%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 46% of total assets including (1) deposits with other domestic financial institutions for 2%, (2) deposits overseas for 20%, (3) deposits with domestic OBUs for 3%, and (4) due from related offices for 21%. The other uses of funds included (1) loans for 32%, (2) security investments for 15%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 57%, followed by America for 26%, Europe for 14%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of December 2009 was US$30.571 billion, of which 98% was extended to overseas clients, including long-term loans for US$19.708 billion and short-term loans for US$10.120 billion. The remaining 2% was extended to local clients for US$743 million.
The volume of export related banking business of all OBUs in December 2009 was US$31.326 billion including (1) export collection, export remittance, and accounts receivable factoring for US$30.026 billion and (2) export negotiation for US$1.300 billion. The volume of import related banking business of all OBUs was US$29.466 billion.
The turnover of other derivative products trading by all OBUs in December 2009 was US$18.532 billion including (1) financial futures for US$10.100 billion, (2) options for US$7.672 billion, (3) foreign currency interest rate swaps for US$372 million, (4) credit derivatives for US$303 million, (5) margin account trading for US$71 million, (6) commodity forward contracts for US$12 million, and (7) commodity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on March 10, 2010.