Overview of offshore banking units (April 2011)
PRESS RELEASE Release Date: June 2, 2011
Overview of offshore banking units (April 2011)
At the end of April 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$128.595 billion at the end of April 2011, an increase of US$21.729 billion or 20.33% compared to the same period of the previous year. Domestic bank OBUs accounted for US$101.949 billion or 79% of these combined assets, and foreign bank OBUs accounted for US$26.646 billion or 21% of the total.
The turnover of foreign exchange trading by all OBUs in April 2011 was US$24.727 billion consisting of: (1) spot transactions for US$11.621 billion, (2) outright forwards for US$8.487 billion, and (3) foreign exchange swaps for US$4.619 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 8%, and (4) due from related offices for 28%. 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 60%, followed by America for 28%, Europe for 8%, and other areas for 4%.
The main sources of funds were due to related offices and deposits by financial institutions, which together accounted for 61% 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 44%. The other sources of funds included: (1) deposits by non-financial institutions accounting for 27% 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 70%, followed by America for 21%, Europe for 7%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of April 2011 was US$47.834 billion, of which 99.7% was extended to overseas clients, including medium and long-term loans for US$27.247 billion and short-term loans for US$20.440 billion. The remaining 0.3% was extended to local clients for US$147 million.
The volume of export related banking business of all OBUs in April 2011 was US$30.665 billion, including: (1) collection, remittance, and accounts receivable factoring for US$29.256 billion, and (2) L/C negotiation for US$1.409 billion. The volume of import related banking business of all OBUs was US$29.173 billion.
The turnover of derivative products trading by all OBUs in April 2011 was US$36.407 billion, including: (1) futures for US$20.022 billion, (2) options for US$15.152 billion, (3) interest rate swaps for US$947 million, (4) credit derivatives for US$157 million, (5) margin account trading for US$66 million, (6) equity swaps for US$22 million, (7) commodity forward contracts for US$20 million, (8) commodity swaps for US$16 million, and (9) cross currency swaps for US$5 million.
Note: The next dissemination will be made at 16:20 p.m. on July 4, 2011.