Overview of offshore banking units (January 2011)
PRESS RELEASE Release Date: March 9, 2011
Overview of offshore banking units (January 2011)
At the end of January 2011, there were 61 offshore banking units (OBUs) including 36 domestic banks and 25 foreign banks. The combined assets of all OBUs amounted to US$121.643 billion at the end of January 2011, an increase of US$19.643 billion or 19.26% compared to the same period of the previous year. Domestic bank OBUs accounted for US$96.339 billion or 79% of these combined assets, and foreign bank OBUs accounted for US$25.304 billion or 21% of the total.
The turnover of foreign exchange trading by all OBUs in January 2011 was US$20.412 billion consisting of: (1) spot transactions for US$11.078 billion, (2) outright forwards for US$5.032 billion, and (3) foreign exchange swaps for US$4.302 billion.
Based on balance sheet analysis, the OBUs main sources of funds were due to related offices and deposits by financial institutions, which together accounted for 62% 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 45%. The other sources of funds included: (1) deposits by non-financial institutions accounting for 26% of total liabilities, and (2) other liabilities plus the equity of head office for 12%. In terms of the area of origin, Asia accounted for 72%, followed by America for 20%, Europe for 6%, and other areas for 2%.
The main uses for funds were due from related offices and deposits with financial institutions, which together accounted for 43% of total assets, including: (1) deposits with domestic financial institutions for 2%, (2) deposits overseas for 5%, (3) deposits with other OBUs for 9%, and (4) due from related offices for 27%. The other uses of funds included: (1) loans for 36%, (2) securities investments for 13%, and (3) other assets for 8%. 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 January 2011 was US$43.425 billion, of which 99.7% was extended to overseas clients, including medium and long-term loans for US$24.975 billion and short-term loans for US$18.302 billion. The remaining 0.3% was extended to local clients for US$148 million.
The volume of export related banking business of all OBUs in January 2011 was US$29.215 billion, including: (1) collection, remittance, and accounts receivable factoring for US$27.753 billion, and (2) L/C negotiation for US$1.462 billion. The volume of import related banking business of all OBUs was US$29.314 billion.
The turnover of derivative products trading by all OBUs in January 2011 was US$49.389 billion, including: (1) financial futures for US$33.533 billion, (2) options for US$13.665 billion, (3) interest rate swaps for US$1.441 billion, (4) credit derivatives for US$620 million, (5) commodity futures for US$86 million, (6) margin account trading for US$40 million, (7) commodity swaps for US$3 million, and (8) equity swaps for US$1 million.
Note: The next dissemination will be made at 16:20 p.m. on April 6, 2011.