Overview of offshore banking units (November 2010)
PRESS RELEASE Release Date: Jan. 4, 2011
Overview of offshore banking units (November 2010)
At the end of November 2010, there were 61 offshore banking units (OBUs) including 36 domestic banks and 25 foreign banks. The combined assets of all OBUs amounted to US$118.425 billion at the end of November 2010, an increase of US$21.813 billion or 22.58% compared to the same period of the previous year. Domestic bank OBUs accounted for US$92.660 billion or 78% of these combined assets, and foreign bank OBUs accounted for US$25.765 billion or 22% of the total.
The turnover of foreign exchange trading by all OBUs in November 2010 was US$17.051 billion consisting of: (1) spot transactions for US$9.935 billion, (2) outright forwards for US$3.467 billion, and (3) foreign exchange swaps for US$3.649 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 71%, followed by America for 21%, Europe for 6%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 45% of total assets, including: (1) deposits with domestic financial institutions for 1%, (2) deposits overseas for 6%, (3) deposits with other OBUs for 9%, and (4) due from related offices for 29%. The other uses of funds included: (1) loans for 34%, (2) securities investments for 14%, 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 November 2010 was US$40.191 billion, of which 99% was extended to overseas clients, including medium and long-term loans for US$23.147 billion and short-term loans for US$16.840 billion. The remaining 1% was extended to local clients for US$204 million.
The volume of export related banking business of all OBUs in November 2010 was US$28.845 billion, including: (1) collection, remittance, and accounts receivable factoring for US$27.560 billion, and (2) L/C negotiation for US$1.285 billion. The volume of import related banking business of all OBUs was US$29.399 billion.
The turnover of derivative products trading by all OBUs in November 2010 was US$51.247 billion, including: (1) financial futures for US$40.169 billion, (2) options for US$10.297 billion, (3) credit derivatives for US$446 million, (4) interest rate swaps for US$211 million, (5) margin account trading for US$59 million, (6) cross currency swaps for US$56 million, (7) commodity forward contracts for US$7 million, and (8) commodity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on February 8, 2011.