Overview of offshore banking units (August 2010)
PRESS RELEASE Release Date: Oct. 4, 2010
Overview of offshore banking units (August 2010)
At the end of August 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$114.568 billion at the end of August 2010, an increase of US$20.109 billion or 21.29% compared to the same period of the previous year. Domestic bank OBUs accounted for US$88.909 billion or 78% of these combined assets, and foreign bank OBUs accounted for US$25.659 billion or 22% of the total.
The turnover of foreign exchange trading by all OBUs in August 2010 was US$15.806 billion consisting of: (1) spot transactions for US$9.530 billion, (2) outright forwards for US$3.753 billion, and (3) foreign exchange swaps for US$2.523 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 8%, and (4) due to related offices for 45%. The other sources of funds included: (1) deposits by non-financial institutions accounting for 29% of total liabilities, and (2) 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 21%, Europe for 8%, 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 domestic financial institutions for 2%, (2) deposits overseas for 7%, (3) deposits with other OBUs for 8%, and (4) due from related offices for 30%. The other uses of funds included: (1) loans for 33%, (2) securities investments for 13%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 60%, followed by America for 28%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of August 2010 was US$37.305 billion, of which 99% was extended to overseas clients, including medium and long-term loans for US$21.658 billion and short-term loans for US$15.412 billion. The remaining 1% was extended to local clients for US$235 million.
The volume of export related banking business of all OBUs in August 2010 was US$29.053 billion, including: (1) collection, remittance, and accounts receivable factoring for US$27.741 billion, and (2) L/C negotiation for US$1.312 billion. The volume of import related banking business of all OBUs was US$27.781 billion.
The turnover of derivative products trading by all OBUs in August 2010 was US$54.847 billion, including: (1) financial futures for US$42.735 billion, (2) options for US$10.949 billion, (3) credit derivatives for US$649 million, (4) interest rate swaps for US$472 million, (5) margin account trading for US$29 million, (6) commodity forward contracts for US$11 million, and (7) commodity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on November 2, 2010.