Overview of offshore banking units (July 2010)
PRESS RELEASE Release Date: September 2, 2010
Overview of offshore banking units (July 2010)
At the end of July 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$112.199 billion at the end of July 2010, an increase of US$18.691 billion or 19.99% compared to the same period of the previous year. Domestic bank OBUs accounted for US$87.624 billion or 78% of these combined assets, and foreign bank OBUs accounted for US$24.575 billion or 22% of the total.
The turnover of foreign exchange trading by all OBUs in July 2010 was US$15.578 billion consisting of (1) spot transactions for US$10.122 billion, (2) outright forwards for US$3.119 billion, and (3) foreign exchange swaps for US$2.337 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 6%, (3) inter-OBU deposits for 9%, and (4) due to related offices for 44%. 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 69%, followed by America for 22%, Europe for 7%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 47% of total assets including (1) deposits with other domestic financial institutions for 2%, (2) deposits overseas for 7%, (3) deposits with domestic OBUs for 9%, and (4) due from related offices for 29%. The other uses of funds included (1) loans for 33%, (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 29%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of July 2010 was US$36.755 billion, of which 99% was extended to overseas clients, including long-term loans for US$21.581 billion and short-term loans for US$14.929 billion. The remaining 1% was extended to local clients for US$245 million.
The volume of export related banking business of all OBUs in July 2010 was US$28.795 billion including (1) export collection, export remittance, and accounts receivable factoring for US$27.493 billion and (2) export negotiation for US$1.302 billion. The volume of import related banking business of all OBUs was US$27.747 billion.
The turnover of other derivative products trading by all OBUs in July 2010 was US$36.889 billion including (1) financial futures for US$26.306 billion, (2) options for US$9.710 billion, (3) credit derivatives for US$434 million, (4) interest rate swaps for US$364 million, (5) margin account trading for US$51 million, (6) commodity forward contracts for US$23 million, and (7) commodity swaps for US$1 million.
Note: The next dissemination will be made at 16:20 p.m. on October 4, 2010.