Overview of offshore banking units (June 2011)
PRESS RELEASE Release Date: August 2, 2011
Overview of offshore banking units (June 2011)
At the end of June 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$134.339 billion at the end of June 2011, an increase of US$25.394 billion or 23.31% compared to the same period of the previous year. Domestic bank OBUs accounted for US$107.319 billion or 80% of these combined assets, and foreign bank OBUs accounted for US$27.020 billion or 20% of the total.
The turnover of foreign exchange trading by all OBUs in June 2011 was US$20.609 billion consisting of: (1) spot transactions for US$10.803 billion, (2) outright forwards for US$5.412 billion, and (3) foreign exchange swaps for US$4.394 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 41% 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 27%. The other uses of funds included: (1) loans for 39%, (2) securities investments for 12%, and (3) other assets for 8%. Asia was the main destination for funds, accounting for 62%, followed by America for 26%, 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 63% of total liabilities, including: (1) deposits by financial institutions situated locally for 3%, (2) deposits by financial institutions located overseas for 8%, (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 11%. 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 June 2011 was US$52.384 billion, of which 99.8% was extended to overseas clients, including medium and long-term loans for US$29.614 billion and short-term loans for US$22.678 billion. The remaining 0.2% was extended to local clients for US$92 million.
The volume of export related banking business of all OBUs in June 2011 was US$35.869 billion, including: (1) collection, remittance, and accounts receivable factoring for US$34.203 billion, and (2) L/C negotiation for US$1.666 billion. The volume of import related banking business of all OBUs was US$31.665 billion.
The turnover of derivative products trading by all OBUs in June 2011 was US$49.144 billion, including: (1) futures for US$27.279 billion, (2) options for US$19.985 billion, (3) interest rate swaps for US$1.220 billion, (4) credit derivatives for US$543 million, (5) margin account trading for US$64 million, (6) commodity swaps for US$37 million, (7) commodity forward contracts for US$14 million, and (8) equity swaps for US$2 million.
Note: The next dissemination will be made at 16:20 p.m. on September 2, 2011.