Overview of offshore banking units (August 2011)
PRESS RELEASE Release Date: October 4, 2011
Overview of offshore banking units (August 2011)
At the end of August 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$136.675 billion at the end of August 2011, an increase of US$22.107 billion or 19.30% compared to the same period of the previous year. Domestic bank OBUs accounted for US$107.369 billion or 79% of these combined assets, and foreign bank OBUs accounted for US$29.306 billion or 21% of the total.
The turnover of foreign exchange trading by all OBUs in August 2011 was US$25.497 billion consisting of: (1) spot transactions for US$14.056 billion, (2) outright forwards for US$7.252 billion, and (3) foreign exchange swaps for US$4.189 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 40% 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 27%. The other uses of funds included: (1) loans for 41%, (2) securities investments for 11%, 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 4%, (2) deposits by financial institutions located overseas for 7%, (3) inter-OBU deposits for 7%, and (4) due to related offices for 45%. 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 70%, followed by America for 18%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of August 2011 was US$56.415 billion, of which 99.8% was extended to overseas clients, including medium and long-term loans for US$31.185 billion and short-term loans for US$25.128 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 August 2011 was US$35.166 billion, including: (1) collection, remittance, and accounts receivable factoring for US$33.457 billion, and (2) L/C negotiation for US$1.709 billion. The volume of import related banking business of all OBUs was US$31.160 billion.
The turnover of derivative products trading by all OBUs in August 2011 was US$38.654 billion, including: (1) futures for US$18.818 billion, (2) options for US$17.951 billion, (3) interest rate swaps for US$1.202 billion, (4) credit derivatives for US$433 million, (5) margin account trading for US$159 million, (6) commodity swaps for US$71 million, (7) commodity forward contracts for US$19 million, and (8) equity swaps for US$1 million.
Note: The next dissemination will be made at 16:20 p.m. on November 2, 2011.