Overview of offshore banking units (May 2010)
PRESS RELEASE Release Date: July 2, 2010
Overview of offshore banking units (May 2010)
At the end of May 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$113.048 billion at the end of May 2010, an increase of US$11.679 billion or 11.52% compared to the same period of the previous year. Domestic bank OBUs accounted for US$90.840 billion or 80% of these combined assets, and foreign bank OBUs accounted for US$22.208 billion or 20% of the total.
The turnover of foreign exchange trading by all OBUs in May 2010 was US$18.106 billion consisting of (1) spot transactions for US$10.916 billion, (2) outright forwards for US$4.025 billion, and (3) foreign exchange swaps for US$3.165 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 63% of total liabilities including (1) deposits by financial institutions situated locally for 3%, (2) deposits by financial institutions located overseas for 4%, (3) inter-OBU deposits for 10%, and (4) due to related offices for 46%. The other sources of funds included deposits by non-financial institutions accounting for 28% of total liabilities, and other liabilities plus the equity of head office for 9%. In terms of the area of origin, Asia accounted for 73%, followed by America for 20%, Europe for 5%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 49% of total assets including (1) deposits with other domestic financial institutions for 2%, (2) deposits overseas for 11%, (3) deposits with domestic OBUs for 10%, and (4) due from related offices for 26%. The other uses of funds included (1) loans for 31%, (2) security investments for 12%, and (3) other assets for 8%. Asia was the main destination for funds, accounting for 55%, followed by America for 30%, Europe for 12%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of May 2010 was US$34.885 billion, of which 98% was extended to overseas clients, including long-term loans for US$20.493 billion and short-term loans for US$13.680 billion. The remaining 2% was extended to local clients for US$712 million.
The volume of export related banking business of all OBUs in May 2010 was US$22.558 billion including (1) export collection, export remittance, and accounts receivable factoring for US$21.304 billion and (2) export negotiation for US$1.254 billion. The volume of import related banking business of all OBUs was US$22.298 billion.
The turnover of other derivative products trading by all OBUs in May 2010 was US$46.841 billion including (1) financial futures for US$34.667 billion, (2) options for US$10.126 billion, (3) credit derivatives for US$1.671 billion, (4) interest rate swaps for US$194 million, (5) margin account trading for US$143 million, (6) commodity forward contracts for US$31 million, and (7) commodity swaps for US$9 million.
Note: The next dissemination will be made at 16:20 p.m. on August 3, 2010.