Overview of offshore banking units (June 2010)
PRESS RELEASE Release Date: August 3, 2010
Overview of offshore banking units (June 2010)
At the end of June 2010, there were 62 offshore banking units (OBUs) including 36 domestic banks and 26 foreign banks. The combined assets of all OBUs amounted to US$108.945 billion at the end of June 2010, an increase of US$12.694 billion or 13.19% compared to the same period of the previous year. Domestic bank OBUs accounted for US$86.691 billion or 80% of these combined assets, and foreign bank OBUs accounted for US$22.254 billion or 20% of the total.
The turnover of foreign exchange trading by all OBUs in June 2010 was US$16.676 billion consisting of (1) spot transactions for US$10.451 billion, (2) outright forwards for US$3.829 billion, and (3) foreign exchange swaps for US$2.396 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 3%, (2) deposits by financial institutions located overseas for 4%, (3) inter-OBU deposits for 10%, and (4) due to related offices for 45%. The other sources of funds included deposits by non-financial institutions accounting for 29% 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 22%, 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 48% of total assets including (1) deposits with other domestic financial institutions for 2%, (2) deposits overseas for 8%, (3) deposits with domestic OBUs for 10%, and (4) due from related offices for 28%. The other uses of funds included (1) loans for 32%, (2) security investments for 13%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 59%, followed by America for 28%, Europe for 10%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of June 2010 was US$35.190 billion, of which 99% was extended to overseas clients, including long-term loans for US$21.192 billion and short-term loans for US$13.571 billion. The remaining 1% was extended to local clients for US$427 million.
The volume of export related banking business of all OBUs in June 2010 was US$29.661 billion including (1) export collection, export remittance, and accounts receivable factoring for US$28.455 billion and (2) export negotiation for US$1.206 billion. The volume of import related banking business of all OBUs was US$28.391 billion.
The turnover of other derivative products trading by all OBUs in June 2010 was US$34.537 billion including (1) financial futures for US$24.075 billion, (2) options for US$9.428 billion, (3) credit derivatives for US$631 million, (4) interest rate swaps for US$306 million, (5) margin account trading for US$50 million, (6) commodity forward contracts for US$45 million, and (7) commodity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on September 2, 2010.