Overview of offshore banking units (March 2010)
PRESS RELEASE Release Date: May 4, 2010
Overview of offshore banking units (March 2010)
At the end of March 2010, there were 63 offshore banking units (OBUs) including 36 domestic banks and 27 foreign banks. The combined assets of all OBUs amounted to US$106.256 billion at the end of March 2010, an increase of US$5.894 billion or 5.87% compared to the same period of the previous year. Domestic bank OBUs accounted for US$82.892 billion or 78% of these combined assets, and foreign bank OBUs accounted for US$23.364 billion or 22% of the total.
The turnover of foreign exchange trading by all OBUs in March 2010 was US$15.797 billion consisting of (1) spot transactions for US$8.238 billion, (2) outright forwards for US$4.530 billion, and (3) foreign exchange swaps for US$3.029 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 62% 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 9%, and (4) due to related offices for 46%. The other sources of funds included deposits by non-financial institutions accounting for 30% of total liabilities, and other liabilities plus the equity of head office for 8%. In terms of the area of origin, Asia accounted for 74%, followed by America for 20%, 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 12%, (3) deposits with domestic OBUs for 9%, and (4) due from related offices for 27%. The other uses of funds included (1) loans for 30%, (2) security investments for 13%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 61%, followed by America for 25%, Europe for 11%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of March 2010 was US$32.354 billion, of which 98% was extended to overseas clients, including long-term loans for US$20.349 billion and short-term loans for US$11.293 billion. The remaining 2% was extended to local clients for US$712 million.
The volume of export related banking business of all OBUs in March 2010 was US$30.106 billion including (1) export collection, export remittance, and accounts receivable factoring for US$28.815 billion and (2) export negotiation for US$1.291 billion. The volume of import related banking business of all OBUs was US$28.323 billion.
The turnover of other derivative products trading by all OBUs in March 2010 was US$36.106 billion including (1) financial futures for US$25.027 billion, (2) options for US$9.645 billion, (3) interest rate swaps for US$702 million, (4) credit derivatives for US$609 million, (5) margin account trading for US$66 million, (6) cross currency swaps for US$40 million, (7)commodity forward contracts for US$14 million, and (8) commodity swaps for US$3 million.
Note: The next dissemination will be made at 16:20 p.m. on June 3, 2010.