Overview of offshore banking units (July 2011)
PRESS RELEASE Release Date: September 2, 2011
Overview of offshore banking units (July 2011)
At the end of July 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$134.854 billion at the end of July 2011, an increase of US$22.655 billion or 20.19% compared to the same period of the previous year. Domestic bank OBUs accounted for US$107.718 billion or 80% of these combined assets, and foreign bank OBUs accounted for US$27.136 billion or 20% of the total.
The turnover of foreign exchange trading by all OBUs in July 2011 was US$20.835 billion consisting of: (1) spot transactions for US$10.659 billion, (2) outright forwards for US$6.378 billion, and (3) foreign exchange swaps for US$3.798 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 39% of total assets, including: (1) deposits with domestic financial institutions for 2%, (2) deposits overseas for 4%, (3) deposits with other OBUs for 7%, and (4) due from related offices for 26%. The other uses of funds included: (1) loans for 41%, (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 64% 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 46%. The other sources of funds included: (1) deposits by non-financial institutions accounting for 25% 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 71%, followed by America for 19%, Europe for 8%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of July 2011 was US$54.833 billion, of which 99.8% was extended to overseas clients, including medium and long-term loans for US$30.382 billion and short-term loans for US$24.349 billion. The remaining 0.2% was extended to local clients for US$102 million.
The volume of export related banking business of all OBUs in July 2011 was US$32.787 billion, including: (1) collection, remittance, and accounts receivable factoring for US$31.163 billion, and (2) L/C negotiation for US$1.624 billion. The volume of import related banking business of all OBUs was US$30.196 billion.
The turnover of derivative products trading by all OBUs in July 2011 was US$41.237 billion, including: (1) futures for US$20.263 billion, (2) options for US$18.906 billion, (3) interest rate swaps for US$1.041 billion, (4) credit derivatives for US$896 million, (5) margin account trading for US$66 million, (6) commodity swaps for US$48 million, (7) commodity forward contracts for US$10 million, and (8) equity swaps for US$7 million.
Note: The next dissemination will be made at 16:20 p.m. on October 4, 2011.