Overview of offshore banking units (October 2010)
PRESS RELEASE Release Date: Dec. 2, 2010
Overview of offshore banking units (October 2010)
At the end of October 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$120.626 billion at the end of October 2010, an increase of US$26.696 billion or 28.42% compared to the same period of the previous year. Domestic bank OBUs accounted for US$94.098 billion or 78% of these combined assets, and foreign bank OBUs accounted for US$26.528 billion or 22% of the total.
The turnover of foreign exchange trading by all OBUs in October 2010 was US$17.333 billion consisting of: (1) spot transactions for US$9.010 billion, (2) outright forwards for US$4.718 billion, and (3) foreign exchange swaps for US$3.605 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 61% of total liabilities, including: (1) deposits by financial institutions situated locally for 3%, (2) deposits by financial institutions located overseas for 5%, (3) inter-OBU deposits for 9%, and (4) due to related offices for 44%. 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 10%. In terms of the area of origin, Asia accounted for 70%, followed by America for 21%, 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 domestic financial institutions for 2%, (2) deposits overseas for 6%, (3) deposits with other OBUs for 9%, 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 61%, followed by America for 27%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of October 2010 was US$39.927 billion, of which 99% was extended to overseas clients, including medium and long-term loans for US$22.695 billion and short-term loans for US$17.028 billion. The remaining 1% was extended to local clients for US$204 million.
The volume of export related banking business of all OBUs in October 2010 was US$28.076 billion, including: (1) collection, remittance, and accounts receivable factoring for US$26.936 billion, and (2) L/C negotiation for US$1.140 billion. The volume of import related banking business of all OBUs was US$27.617 billion.
The turnover of derivative products trading by all OBUs in October 2010 was US$60.578 billion, including: (1) financial futures for US$49.913 billion, (2) options for US$9.193 billion, (3) interest rate swaps for US$790 million, (4) credit derivatives for US$631 million, (5) margin account trading for US$27 million, (6) commodity forward contracts for US$22 million, and (7) commodity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on January 4, 2011.