Overview of offshore banking units (May 2011)
PRESS RELEASE Release Date: July 4, 2011
Overview of offshore banking units (May 2011)
At the end of May 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$131.172 billion at the end of May 2011, an increase of US$18.124 billion or 16.03% compared to the same period of the previous year. Domestic bank OBUs accounted for US$103.410 billion or 79% of these combined assets, and foreign bank OBUs accounted for US$27.762 billion or 21% of the total.
The turnover of foreign exchange trading by all OBUs in May 2011 was US$21.592 billion consisting of: (1) spot transactions for US$10.672 billion, (2) outright forwards for US$5.817 billion, and (3) foreign exchange swaps for US$5.103 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 38%, (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 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 62% of total liabilities, including: (1) deposits by financial institutions situated locally for 3%, (2) deposits by financial institutions located overseas for 7%, (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 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 69%, followed by America for 20%, Europe for 9%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of May 2011 was US$50.286 billion, of which 99.7% was extended to overseas clients, including medium and long-term loans for US$27.721 billion and short-term loans for US$22.418 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 May 2011 was US$30.801 billion, including: (1) collection, remittance, and accounts receivable factoring for US$29.389 billion, and (2) L/C negotiation for US$1.412 billion. The volume of import related banking business of all OBUs was US$29.037 billion.
The turnover of derivative products trading by all OBUs in May 2011 was US$40.719 billion, including: (1) futures for US$22.760 billion, (2) options for US$15.883 billion, (3) interest rate swaps for US$1.610 billion, (4) credit derivatives for US$340 million, (5) margin account trading for US$74 million, (6) commodity swaps for US$45 million, (7) equity swaps for US$6 million, and (8) commodity forward contracts for US$1 million.
Note: The next dissemination will be made at 16:20 p.m. on August 2, 2011.