Overview of offshore banking units (March 2011)
PRESS RELEASE Release Date: May 3, 2011
Overview of offshore banking units (March 2011)
At the end of March 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$125.653 billion at the end of March 2011, an increase of US$19.397 billion or 18.25% compared to the same period of the previous year. Domestic bank OBUs accounted for US$99.230 billion or 79% of these combined assets, and foreign bank OBUs accounted for US$26.423 billion or 21% of the total.
The turnover of foreign exchange trading by all OBUs in March 2011 was US$24.150 billion consisting of: (1) spot transactions for US$14.249 billion, (2) outright forwards for US$5.491 billion, and (3) foreign exchange swaps for US$4.410 billion.
Based on balance sheet analysis, the OBUs main uses of funds were due from related offices and deposits with financial institutions, which together accounted for 42% of total assets, including: (1) deposits with domestic financial institutions for 2%, (2) deposits overseas for 4%, (3) deposits with other OBUs for 9%, and (4) due from related offices for 27%. The other uses of funds included: (1) loans for 37%, (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 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 4%, (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 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 71%, followed by America for 20%, Europe for 7%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of March 2011 was US$46.151 billion, of which 99.7% was extended to overseas clients, including medium and long-term loans for US$26.444 billion and short-term loans for US$19.590 billion. The remaining 0.3% was extended to local clients for US$117 million.
The volume of export related banking business of all OBUs in March 2011 was US$35.195 billion, including: (1) collection, remittance, and accounts receivable factoring for US$33.648 billion, and (2) L/C negotiation for US$1.547 billion. The volume of import related banking business of all OBUs was US$32.762 billion.
The turnover of derivative products trading by all OBUs in March 2011 was US$46.120 billion, including: (1) futures for US$27.007 billion, (2) options for US$16.958 billion, (3) interest rate swaps for US$1.554 billion, (4) credit derivatives for US$424 million, (5) margin account trading for US$71 million, (6) cross currency swaps for US$44 million, (7) commodity swaps for US$39 million, and (8) commodity forward contracts for US$23 million.
Note: The next dissemination will be made at 16:20 p.m. on June 2, 2011.